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Littleton Plastics manufactures custom park furniture and signage from recycled plastics (primarily shredded plastic containers.) Many of the company's customers are municipalities that are required
Littleton Plastics manufactures custom park furniture and signage from recycled plastics (primarily shredded plastic containers.) 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 postconsumer waste materials, preconsumer waste materials, and recovered materials.) As a result, Littleton includes two types of direct material charges in its job cost for each job: (1) virgin materials (nonrecycled); and (2) recycled-content materials. The company also keeps track of the weight of each type of direct material so that the final recycled-content percentage for the job can be reported to the customer. In its internal report system, Littleton also reports on the percentage of recycled content as a total of plastic used each month to help to encourage managers to use recycled content whenever possible. Littleton Plastics uses a predetermined manufacturing overhead rate of $9 per direct labour hour. Here is a summary of the materials and labour used on a recent job for Canmore: (Click the icon to view the data.) Requirements Requirement 1. Calculate the total cost of the Canmore job. (Round interim and final answers to the nearest whole dollar.) Canmore Job Total job cost Requirement 2. Calculate the percentage of recycled content used in the Canmore job (in kg). (Enter percentage amounts as a whole number. Round weights to the nearest whole number.) First, enter the formula, and then calculate the percentage of recycled content. Percentage of recycled content % If items purchased by Canmore are required by county charter to contain at least 40% recycled-content, does this job meet that requirement? meet that requirement. Quantity Cost Description Virgin materials Recycled-content materials 37 kg $7.20 per kg $6.30 per kg 88 kg Direct labour 19 hours $10.00 per hour Print Done
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