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Proxy overhead calculation The prescribed proxy amount will be reduced to 55 per cent (from 65 per cent) of direct labour costs in a phased-in approach with costs incurred in 2013 having a rate of 60 per cent applied, and 2014 having a rate of 55 per cent.
reviewed the highlights of 2008, noting that direct labour costs were reduced by more than 11 per cent, more advertising of products occurred, and a partnership with a water heater/water softener company was established to increase rentals and sales.
Some might maintain that direct labour costs are proportional to the company's level of activity.