Jamboree Storage Solutions Ltd. manufactures custom storage units for the resource industries from recycled plastics. Many of the company's customers are responding to negative publicity regarding the effect their exploration and development activities are having on the environment. Consequently Jamboree Storage Solutions Ltd. products are gaining market share.
Jamboree Storage Solutions Ltd. includes two types of direct material charges in their job cost for each job: 1) Non-recycled; and 2) Recycled. 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. The company also reports on the percentage of recycled content as a total of plastics used each month on its own internal reporting system to help encourage managers to use recycled-content whenever possible.
Jamboree Storage Solutions Ltd. uses a predetermined manufacturing overhead rate of $25 per direct labour hour. Here is a summary of the materials and labour used on a recent job for Daphne Exploration Ltd.:
| Description | Non-recycled | Recycled | Direct labour |
| Quantity | 240 Kg. | 1,800 Kg. | 7 hours |
| Cost | $8.00/Kg. | $10.00/Kg. | $28.00/hour |
Required:
| A) | Calculate the total cost of the Daphne Exploration Ltd. job |
| B) | Calculate the percentage of recycled content used in the job based on kilograms |
Timber in storage for later processing at a sawmill.
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