Reference no: EM132486243

Question - Gordon Recycle plans to produce 1,500 recycle bins during April. Each bin requires 1.7 kilograms of plastic and 0.1 hours of direct labour.

Plastic costs $2.15 per kilogram. Gordon pays its employees $12.50 per hour.

Manufacturing overhead is applied at a rate of 150% of direct labour costs. Finished plastic lids are purchased separately from another supplier.

Gordon has 400 kilograms of plastic in beginning inventory and wants to have 550 kilograms in ending inventory.

Required - Answer the following questions, substantiating your statements with the formulas and calculation:

a) How many kilograms of plastic direct materials should Gordon plan to buy during April?

b) How much should Gordon budget for direct labour for April?

c) How much manufacturing overhead will be charged to each recycle bin in April?

d) What is the cost per unit of the bins produced in April?