A) What are direct and indirect materials used in production for a loaf of bread?

Assume:

1. Production will be in your personal kitchen or workshop, therefore no rent expense will be incurred.
2. Use the fixed amount of $100 per month for the additional utilities expense that will be incurred in the production of your product.
3. 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.
4. The federal minimum wage should be used as the labor cost per hour.
5. Assume no indirect labor.