Product Costing Project Develop the full cost of a simple item. Choose a simple

Product Costing Project
Develop the full cost of a simple item.
Choose a simple, everyday household item (i.e. loaf of bread, fabric placemat, broom) to investigate its full cost.
Describe the product and share why it was chosen.
Identify all direct and indirect materials used in production. ( I would suggest a bulleted list with price estimates).
Identify the different production stages and the labor requirements for each stage. ( I would suggest a numbered list that includes the hourly labor requirement and wage for each stage.)
Calculate the overhead.
You will use the material, labor, and overhead amounts to calculate the production cost per unit.
Given the product cost and competition, recommend a selling price for your product.
Assumptions:
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 utilities 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.
Requirements:
Written portion of the project should be 2-3 pages, including the spreadsheet.
Project deliverable should include:
Why product was chosen?
How costs were derived (what were the source for your information for materials costs)?
How was selling price determined? (provide the rationale for your selling price decision)
Why your classmates should purchase your product? (Sell it – this part should be fun!)