Question: Haas Plastics manufactures custom park furniture and signage from recycled

Haas Plastics manufactures custom park furniture and signage from recycled plastics (primarily shredded milk jugs). Many of the company’s customers are municipalities that are required by law to purchase goods that meet certain recycled- content guidelines. (Recycled content can include post- consumer waste materials, pre- consumer waste materials, and recovered materials.) As a result, Haas Plastics includes two types of direct material charges in its job cost for each job: (1) virgin materials (non- recycled) and (2) recycled-content materials. The company also keeps track of the pounds of each type of direct material so that the final recycled- content percentage for the job can be reported to the customer. The company also reports on the percentage of recycled content to total plastic used each month on its own internal reporting system to help encourage managers to use recycled content whenever possible.
The company uses a predetermined manufacturing overhead rate of $ 9.00 per ­direct labor hour. Here is a summary of the materials and labor used on a recent job for Jefferson County:

1. Calculate the total cost of the Jefferson County job.
2. Calculate the percentage of recycled content used in the Jefferson County job (using pounds). If items purchased by Jefferson County are required by county charter to contain at least 40% recycled content, does this job meet thatrequirement?

Sale on SolutionInn
  • CreatedAugust 27, 2014
  • Files Included
Post your question