CHAPTER 15 Using Excel to Make Decisions at Current Designs Topic(s): Job Order Costing Excel Functions and Tools: Using Mathematical Formulas Huegel Hollow Resort has ordered 20 rotomolded kayaks from Current Designs. Each kayak will be formed in the rotomolded oven, cooled, and then the excess plastic trimmed away. Then, the hatches, seat, ropes, and bungees will be attached to the o kayak Dave Thill, the kayak plant manager, knows that manufacturing each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.50 per pound, and the 3 finishing kits cost $170 each. Each kayak will use two kinds of labor: 2 hours of more 4 skilled type I abor from people who run the oven and trim the plastic, and 3 hours of 5 less-skilled type il labor from people who attach the hatches and seat and other 6 hardware. The type l employees are paid $15 per hour, and the type ll employees are paid $12 per hour. For purposes of this problem, assume that overhead is allocated to all jobs at a rate of 150% of direct labor costs. 9 Required o Use sheet tab "Work Area 1. Determine the total cost of the Huegel Hollow order and the cost of each individual kayak in the order. WHAT-IF? 2. Perform what if analysis to answer the following independent questions: 5 a. What is the total cost if Huegel Hollow orders 25 kayaks? b. Suppose Current Designs is able to purchase a higher quality type of polyethylene powder at a cost of $1.65 per pound, which will enable to the company to reduce 7 the number of hours of type l abor to 1 hour. What will be the new cost of each kayak