definiens: shall mean : in connection with the manufacture, testing and storage of any Product, or in connection with the performance or provision of a service hereunder, all costs ( full cost ) incurred by OMN, including, without limitation, labor, material costs, allocable amortization and depreciation, product quality assurance / control costs, allocable facilities costs ( e.g. sewer, water, property taxes ), insurance and other support costs borne by GMN . In order to minimize large swings in the overhead allocation based on production volume, overhead allocations shall be made on the basis of a practical plant capacity of twenty ( 20 ) batches for the Transition Product, the Initial Purchase Order, the Second Purchase Order and the Third Purchase Order, respectively, and thirtY ( 30 ) batches for the Engineering Runs, adjusted for changeovers in production . All allocable costs shall be allocated on a percentage of effort basis . Direct costs ( e.g. materials and production labor ) will be based on actual costs incurred for each production run and will include any variances from the production standard . Such Fully Burdened Cost calculations shall be evidenced by reasonably detailed supporting documentation and shall be prepared consistently from period to period