Question
Huegel Hollow Resort has ordered 23 rotomoulded kayaks from Current Designs. Each kayak will be formed in the rotomoulding oven, cooled, and then the excess
Huegel Hollow Resort has ordered 23 rotomoulded kayaks from Current Designs. Each kayak will be formed in the rotomoulding 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 60 kg of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.50 per kg, and the finishing kits cost $191 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 $16 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 150% of direct labour costs.
Determine the total cost of the Huegel Hollow order and the cost of each individual kayak in the order. Identify costs as direct materials, direct labour, or manufacturing overhead. Direct Materials Polyethylene powder $ Finishing kit Direct Labour More skilled Less skilled Manufacturing overhead Total cost for one kayak $ Total cost of the order $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started