Walton 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, Walton 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 fi nal 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 $10.00 per direct labor hour. Here is a summary of the materials and labor used on a recent job for Mission County:
Description Quantity Cost
Virgin materials.............................. 320 pounds............ $ 4.00 per pound
Recycled-content materials................. 480 pounds............. $ 5.00 per pound
Direct labor....................................... 12 hours.............. $20.00 per hour
Requirements
1. Calculate the total cost of the Mission County job.
2. Calculate the percentage of recycled content used in the Mission County job (using pounds). If items purchased by Mission County are required by county charter to contain at least 50% recycled content, does this job meet that requirement?