Direct and Indirect Materials in Production
What are the direct and indirect materials used in production for a loaf of bread?
- Production will be in your personal kitchen or workshop, therefore no rent expense will be incurred.
- Use the fixed amount of $100 per month for the additional utility expense that will be incurred in the production of your product.
- 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.
- The federal minimum wage should be used as the labor cost per hour.
- Assume no indirect labor. Get Essay Writing Help with HelpHub