Evans Recycle plans to produce 3,000 recycle bins during April. Each bin requires 2.4 pounds of plastic and .25 hours of direct labor. Plastic costs $1.80 per pound. Evans pays it employees $14.00 per hour. Manufacturing overhead is applied at a rate of 200% of direct labor costs. Evans has 500 pounds of plastic in beginning inventory and wants to have 600 pounds in ending inventory. You need not present your calculations in budget format, but be sure I can follow what you did to get the answers.
A. How many pounds of plastic should Evans plan to buy during April?
B. How much should Evans budget for direct labor for April?
C. How much manufacturing overhead will be charged to each recycle bin in April?
D. What is the cost per unit of the bins produced in April?