One yarn=21 Koozies Production assumption: 3 a day: 65 koozies=24017lyear Direct materials Variable Cost Quantity Total Cost Direct material/unit '(arn $0.012/yard 1 $7.99 Crochet Hook $8.99/hook 1 $8.99 _Yarn Needle SHEDeedle 6 $3.00 _ Label and logolpackaging) $0.10/koozie 30 $3.00 Box (packaging) SUJU/box 30 $3.00 Total Direct Materials $25.98 $1.24 ' $25.98/21 Direct Labor Wage Rate D. L Hours Required Total Cost Direct Labor {Dollar/Unit) Direct Labor (HourSlUnit) : Crocheter $11.00 [hour 7 hours/batch (21] $77.00 $3.67 0.33 hours Packaging 511.00 [hour 0.5 hour/batch [21) $5.50 50.26 0.024 hours Total Direct Labor 7.5 hours/batch (21) $82.50 53.93 0.357 hours Manufacturing Overhead Costs Costs per batch Cost per day Total cost per unit _I Variable Overhead IMaterials Delivery Sl'l/hour of delivery $1.47 $0.01 ITotal variable overhead $0.01 I Fixed Overhead Quantity Total Costs {Year} Total Cost per unit :Rent/Electric/Heat SSDD/month 12 $6,000.00 _' Internet S30/month 12 $350.00 __ Insurance SlSD/month 12 $1,800.00 :Total Fixed Overhead / Year $8,160.00 $0.34 lTotaI Manufacturing overhead per unit $0.35 :Total Cost to produce one unit _ Unit Cost __Direct Materials $1.24 lDirect Labor $0.01 iManuf. Overhead $0.35 Total Unit Product Cost $1.60