Choose a simple, everyday household item $($i$.$e$.$ loaf of bread, fabric placemat,

broom$)$ to investigate its full cost.

$2.$ Describe the product and why it was chosen.

$3.$ Identify all direct and indirect materials used in production.

$4.$ Identify the different production stages and the labor requirements for each stage.

$5.$ Calculate the overhead.

$6.$ You will use the material, labor, and overhead amounts to calculate the production

cost per unit.

$7.$ Find the selling price for your product.

$8.$ Assumptions:

a$.$ Production will be in your personal kitchen or workshop, therefore no rent

expense will be incurred.

b$.$ Use the fixed amount of $$150$ per month for the additional utilities expense

that will be incurred in the production of your product.

c$.$ No additional major machinery$/$equipment will need to be purchased. Small

tools and equipment such as hammers or cookie sheets may be lumped

together. They will be considered to have a limited one$-$year life with no

salvage value.

d$.$ The labor cost is $$10$ per hour.

e$.$ Assume no indirect labor.

$9.$ Requirements:

a$.$ Complete spreadsheet

b$.$ Written portion of the project should be $5-6$ pages, including the spreadsheets

$($but not including the cover page$)$ and the following information.

i$.$ Why was the product chosen?

ii$.$ How cost was derived $($where materials were obtained, etc.$)?$

iii. How was the price determined?

iv$.$ Why should your classmates purchase your product? $($Sell it $$ this part

should be fun!$)$