Question
Design a product (examples: greeting card, baked good, protective mask, etc.) Describe the strategy behind your product design. How did strategy influence your design? (Ex
- Design a product (examples: greeting card, baked good, protective mask, etc.)
- Describe the strategy behind your product design. How did strategy influence your design? (Ex low-cost, innovative, high-quality, etc.)
- Produce a Job Cost Sheet. The sheet should include direct materials costs, direct labor costs, and allocated manufacturing overhead.
- Assume $1 of direct labor costs is incurred for every 15 minutes that is spent building the product. (ex- $4 per hour)
- Overhead is allocated on the basis of direct labor dollars. Estimated direct labor dollars for the year are $50,000. In addition, the estimated manufacturing overhead costs for the year are $55,000.
- Job Cost Sheet should have direct materials, direct labor, and overhead.
- Conduct a break even analysis. Assume that the selling price is calculated as cost plus a 50% markup. Actual fixed costs were $55,000.
- Design a PowerPoint presentation.
- Introduction
- Body
- Conclusion
- Upload the slides and coversheet
- Assume $1 of direct labor costs is incurred for every 15 minutes that is spent building the product. (ex- $4 per hour)
- Overhead is allocated on the basis of direct labor dollars. Estimated direct labor dollars for the year are $50,000. In addition, the estimated manufacturing overhead costs for the year are $55,000.
- Introduction
- Body
- Conclusion
| Product Design | 5 pts. |
| Strategy | 10 pts. |
| Job Cost Sheet Calculation/Clear | 10 pts. |
| Breakeven Calculation Correct/Clear | 5 pts. |
| Visual Aids -Grammar/Spelling | 5 pts. |
| Visual Aids - Eye catching (not boring) | 5 pts. |
| Visual Aids Concise/To the Point | 5 pts. |
| Presentation Overall Flow | 10 pts. |
| Professional Appearance | 5 pts. |
| Voice Quality | 5 pts. |
| Total | 65 pts. |
- An example is provided below. You cannot duplicate the example!!!
| Peanut Butter Rice Krispies Treats | |
| 6 cups of Rice Krispies | $3.79 |
| 3 tablespoons of Butter (3 X $0.09 = $0.27) | $3.00 per Pkg. (4 sticks in Pkg.), so $0.75 per stick, 8 tablespoons per stick, means $0.09 per tablespoon |
| Cup of Peanut Butter | $2.29 (16 oz Jar/2 cups per jar), so $1.14 per cup or $0.57 for cup |
| 1 bag of miniature marshmallows | $1.29 per package |
| Total Direct Materials ($3.79 + $0.27 + $0.57 + $1.29) | $5.92 per 9 X 13 pan, 12 servings per pan, so $0.49 per treat for materials |
| If it takes 15 min to make | $1.00 direct labor, so $0.12 per treat for direct labor |
| Allocated OH = $55,000/50,000 | $1.10 of direct labor, so .09 per treat |
| Total Cost Per Treat ($0.49 + $0.12 +$0.09) | $0.70 per treat |
| Breakeven | |
| Sales Price (Cost Plus 50%) ($0.70 +$0.35 = $1.05) | |
| Variable Cost = DM + DL = $0.49 + $0.12 = $0.61 | |
| Units = Fixed Cost/Unit CM Units = $55,000/($1.05-$0.61) | 125,000 treats to breakeven |
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