Written Formal Report for Opening New Facility

1

2

3

4

5

Cost Per

Incoming Unit

Net Quantity

Per Footstool

Cost Per

Footstool

Total Scrap

Loss Factor

Total Material

Per Footstool

Part

#

Description

Quantity/

Footstool

1A

Top: Standard

1 Each

$0.34/Foot

1.333

.453

1.263

.572

2A

Brace: Standard

1 Each

$0.22/Foot

1.000

.220

1.225

.270

3A

Legs: Standard

2 Each

$0.28/Foot

.889

.249

1.276

.318

4

Wood Dowels

4 Each

$0.029 Each

4

.116

1.095

.127

5

Wood Glue

.007 Gal.

$6.25/Gal.

.007

.044

1.095

.048

6

Wood Screws

4 Each

$0.06 Each

4

.240

1.062

.255

7

Sandpaper Disc

.08 Disc

$0.13/Disc

.08

.010

1.141

.011

8

Sandpaper Sheets

.19 Sheet

$0.09/Sheet

.19

.017

1.031

.018

10A

Shipping Cartons

1 Each

$0.42/Each

1

.420

1.000

.420

11

Tape

3 Feet

$0.02/Foot

3

.060

1.000

.060

Total Cost

$2.099

1B

Top: Deluxe

1 Each

$0.64/Foot

1.333

.853

1.328

1.133

2B

Brace: Deluxe

1 Each

$0.32/Foot

1.143

.366

1.238

.453

3B

Legs: Deluxe

2 Each

$0.48/Foot

1.000

.480

1.276

.612

4

Wood Dowels

4 Each

$0.029 Each

4

.116

1.106

.128

5

Wood Glue

.007 Gal.

$6.25/Gal.

.007

.044

1.106

.049

6

Wood Screws

4 Each

$0.06 Each

4

.240

1.073

.258

7

Sandpaper Disc

.08 Disc

$0.13/Disc

.08

.010

1.151

.012

8

Sandpaper Sheets

.19 Sheet

$0.09/Sheet

.19

.017

1.041

.018

9

Lacquer

.03 Gal.

$4.00/Gal.

.03

.120

1.031

.124

10B

Shipping Cartons

1 Each

$0.42/Each

1

.420

1.000

.420

11

Tape

3 Feet

$0.02/Foot

3

.060

1.000

.060

Total Cost

$3.267

1

2

3

4

5

6

7

8

9

Production Data:

Standard = 581,200

Deluxe = 318,200

Hourly Wage

Annual Wage

(2080 Hours/Year)

Unemployment Tax

(3% = 0.03)

FICA Tax

(7.8% = 0.078)

Worker’s Comp.

(0.5% = 0.005)

Total Per Person

Number of People

Overtime Pay

Total Per Year

Cut to Width

11

22880

687

1785

115

25467

3

76401

Cut to Length

11

22880

687

1785

115

25467

8

203736

Cut V into Leg

11

22880

687

1785

115

25467

6

152802

Drill Small Holes

11

22880

687

1785

115

25467

7

178269

Drill Tiny Holes

11

22880

687

1785

115

25467

3

76401

Sand Edges

11

22880

687

1785

115

25467

12

10696

316300

4 Dowels to Top

12

24960

749

1947

125

27781

3

5000

88343

2 Legs to Top

12

24960

749

1947

125

27781

3

83343

Brace to Assembly

12

24960

749

1947

125

27781

4

111124

Final Sanding

12

24960

749

1947

125

27781

3

83343

Inspect

13

27040

812

2110

136

30098

3

90294

Packing

12

24960

749

1947

125

27781

4

7917

119041

Sub-Total Standard

x

x

x

x

x

x

59

x

1579397

Cut to Width

11

22880

687

1785

115

25467

2

50934

Cut Double Length

11

22880

687

1785

115

25467

1

25467

Cut to Length

11

22880

687

1785

115

25467

3

3438

79839

Bevel Top Edges

11

22880

687

1785

115

25467

3

76401

Drill Large Hole

11

22880

687

1785

115

25467

2

50934

Drill Small Holes

11

22880

687

1785

115

25467

4

6112

107980

Drill Tiny Holes

11

22880

687

1785

115

25467

4

101868

Sand Edges

11

22880

687

1785

115

25467

7

178269

4 Dowels to Top

12

24960

749

1947

125

27781

2

55562

2 Legs to Top

12

24960

749

1947

125

27781

2

55562

Brace to Assembly

12

24960

749

1947

125

27781

2

3750

59312

Final Sanding

12

24960

749

1947

125

27781

2

55562

Lacquer and Dry

12

24960

749

1947

125

27781

2

55562

Inspect

13

27040

812

2110

136

30098

2

60196

Packing

12

24960

749

1947

125

27781

3

83343

Sub-Total Deluxe

x

x

x

x

x

x

41

x

1096791

Indirect Employees

14

29120

874

2272

146

32412

11

356532

Office Employees

14

29120

874

2272

146

32412

6

194472

Management Employees

N/A

55000

1650

4290

275

61215

5

306075

Sub-Total Ind./Of./Mgt.

x

x

x

x

x

x

22

x

857079

Grand Total

x

x

x

x

x

x

122

x

3533267