definiens: or means, to the extent that Product is sourcedfrom XOMA, the unit cost of manufactlll'e of Product ( i.e., direct material and direct labor cost3,plus manufacturing overhead flUrly allocated to Product, all calculated in accordance with gener - lllIy accepted accounting principles, c - onsislent1y applied ) . Direct material costs means the actualcosts incutred in manufacturing or purchasing materials, including freight - in costs . sales and el(-clse taxes imposed thereon and customs duty and charges levied by government authorities, andall costs of packaging components . Direct labor costs means the actual cost of employees en - gaged in direct manufacturing activities sod quality control and quality assurance acti"ities whoare dire .. -tly employed in manufacturing and packaging Product Overhead attributable to Prod - uct w1l1include a reasonable allocation of indirect labor ( not previously included in direct laborcosts ), a reasonable allocation of administrative costs, and a reasonable allocation of r.,cililles ~ ts, all ; n accordance with geoernlly accepted accoWlting principles, consi ~ ently applied