The clocks were bid for the Kmart order based on an estimated $6.90 cost to manufacture: Circuit board, 1 each (:1) $2.00 $2-00 Plastic case, 1 each @ $0.80 0.80 Alarms, 4 @ $0.15 each 0.60 Labor, 15 minutes @ $12/hour 3.00 Overhead, $2.00 per labor hour 0.50