Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drop downs: The company also keeps track of the pounds of each type of direct material so that the final recycled-content percentage for the job

image text in transcribed

image text in transcribed

image text in transcribedDrop downs:

image text in transcribed

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. Ludlow also reports on the percentage of recycled-content as a total of total plastic used each month in its own internal reporting system to help to encourage managers to use recycled-content whenever possible. Ludlow Plastics uses a predetermined manufacturing overhead rate of $16 per direct labor hour. Here is a summary of the materials and labor used on a recent job for Ottawa County: Cost Description Virgin materials Recycled-content materials Direct labor Quantity 250 pounds 250 pounds 15 hours $4.20 per pound $3.00 per pound $19.00 per hour 1. Calculate the total cost of the Ottawa County job. 2. Calculate the percentage of recycled content used in the Ottawa County job (using pounds). If items purchased by Ottawa County are required by county charter to contain at least 40% recycled content, does this job meet that requirement? Ludlow 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, Ludlow includes two types of direct material charges in its job cost for each job: (1) virgin materials (non-recycled), and (2) recycled-content materials. (Click the icon view the additional data.) Read the fequirements ... Requirement 1. Calculate the total cost of the Ottawa County job. Ottawa County Job Total job cost Administrative expenses Direct labor Indirect labor Indirect materials Manufacturing overhead allocated Manufacturing overhead incurred Total direct materials N

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Mike Tayles, Colin Drury

11th Edition

147377361X, 978-1473773615

More Books

Students also viewed these Accounting questions