4. Leases and rentals: Building leases were allocated to functions in 
the same manner as building depreciation in Item 1 and leases of equipment 
were allocated in the same manner as equipment depreciation in Item 2. 
5. Interest on capital investment: Same as leases and rentals. 
Variable costs 
All variable costs except direct labor, machinery, repairs, office supplies, 
and hogshead materials were allocated on the same basis as building depreciation. 
Direct labor and hogshead materials were allocated according to labor use. 
Machine repairs were allocated according to machine use. Office supplies were 
allocated according to clerical salaries. 
DEFINITION OF TERMS 
Tobacco Processing 
Redrying: Receiving tobacco, weighing, segregating, blending, plucking, 
hanging, redrying, packing into hogsheads, coopering, weighing, and loading out 
hogsheads. 
Storage and Services 
Innage: Receiving hogsheads of tobacco, placing in storage on dunnage, 
and doing paper work necessary for checking bills and entering on books. 
Storage: Maintenance, custodial, and accounting functions necessary during 
storage period. 
Outage: Identifying hogsheads ordered for shipment, removing and loading 
onto transportation equipment, and associated office work. 
Sampling: Identifying hogsheads to be sampled, removing from storage 
to display area, removing casks from tobacco, pulling samples and displaying, 
replacing casks, restoring, and associated office work. 
Reweigh and restore: Identify hogsheads to be weighed. Removing from 
storage, reweighing, restoring and associated office work. 
Reweigh while performing other services: Reweighing while hogshead is 
removed from storage for another service. 
LD 
