EcoSkate makes skateboards from recycled plastic. For a recent job lot of 100 skateboards, the company incurred direct materials costs of $600 and direct labor costs of $200. Overhead is applied using a rate of 150% of direct materials costs. What is the total manufacturing cost of this job lot? What is the cost per skateboard?
EcoSkate makes skateboards from recycled plastic. For a recent job lot of 100 skateboards, the company incurred direct materials costs of $600 and direct labor costs of $200. Overhead is applied using a rate of 150% of direct materials costs. What is the total manufacturing cost of this job lot? What is the cost per skateboard?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EcoSkate makes skateboards from recycled plastic. For a recent job lot of 100 skateboards, the company
incurred direct materials costs of $600 and direct labor costs of $200.
150% of direct materials costs. What is the total
skateboard?
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