2 34567 A friend of yours makes end tables and sell them through a local shop. She would like you to help her figure out what price to charge the shop. Below is information about the manufacturing process. Cost of wood for 10 tables is $115 (Batch Size = 20) Cost of other miscellaneous items (nails, sandpaper, glue) for 100 tables is $90. ONE in 20 tables is not sellable (is thrown out). This is only inspected after the table has been completed. The tables are made in a garage where the rent is $650/month All the machinery (lathe, drill press, table saw) was purchased for $2200 and is expected to last 5 years. Yearly sales of tables is projected at 500/yr. There is one worker who is paid $28/hr. Only when there is work to do The time study to make a table is below. Assume the rating on the worker is 100 and use a 25% allowance. a) What is the material cost of each table? b) What is the labor cost of each table? Be sure to include all the labor taxes: FICA, MCARE, FUTA, ETT, SUT, Workers Comp c) What is the overhead cost per table? d) What is the fully allocated cost of each table? e) What price do you recommend for the sales price of the table (this just a guess on your part, no calculations are needed)? Element 6 Saw wood 7 Drill holes 8 Turn legs Glue and nail 9 10 Sand 11 Stain 12 Inspect 13 14 1 3.20 3.50 8.00 11.00 25.30 16.30 1.30 Observed Cycles Timed (Minutes) 2 3 4 3.50 3.20 6.80 10.20 23.60 17.50 1.30 3.10 4.00 6.10 13.00 25.00 18.90 1.50 4.00 3.60 7.10 12.80 18.90 16.00 1.80 5 5.10 4.20 8.00 12.50 19.40 19.70 1.80