Anderson Plastics manufactures custom park furniture and signage from recycled plastics (primarily shredded milk jugs). Many of
Question:
Anderson Plastics uses a predetermined manufacturing overhead rate of $8.50 per direct labor hour. Here is a summary of the materials and labor used on a recent job for Delaware County:
Description Quantity Cost
Virgin materials.................... 210 pounds......... $ 5.00 per pound
Recycled-content materials....... 490 pounds......... $ 5.50 per pound
Direct labor............................. 15 hours........... $16.00 per hour
Requirements
1. Calculate the total cost of the Delaware County job.
2. Calculate the percentage of recycled content used in the Delaware County job (using pounds). If items purchased by Delaware County are required by county charter to contain at least 50% recycled content, does this job meet that requirement?
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