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Huegel Hollow Resort has ordered 19 rotomoulded kayaks from Current Designs. Each kayak will be formed in the rotomoulded oven, cooled, and then the excess
Huegel Hollow Resort has ordered 19 rotomoulded kayaks from Current Designs. Each kayak will be formed in the rotomoulded oven, cooled, and then the excess plastic trimmed away. Then, the hatches, seat, ropes, and bungees will be attached to the kayak. Dave Thill, the kayak plant manager, knows that manufacturing each kayak requires 52 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.40 per kg, and the finishing kits cost $160 each. Each kayak will use two kinds of labour: 2 hours of more skilled type I labour from people who run the oven and trim the plastic, and 3 hours of less-skilled type II labour from people who attach the hatches and seat and other hardware. The type I employees are paid $14 per hour, and the type II employees are paid $12 per hour. For purposes of this problem, assume that overhead is allocated to all jobs at a rate of 140% of direct labour costs. Determine the total cost of the Huegel Hollow order and the cost of each individual kayak in the order. (Round answers to the nearest whole dollar, e.g. 5, 275.) Cost of each individual kayak $ Total cost of the order $
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