R-Cubed manufactures custom playground equipment from recycled plastics for city school districts. The school districts are required to use a certain percentage of recycled materials to comply with its state grants. As a result, R-Cubed tracks both virgin (non-recycled) and recycled materials used to manufacture its playground equipment. R-Cubed uses a predetermined manufacturing overhead rate of $7.40 per direct labor hour.
Here is a summary of the materials and labor used on a recent job for Stow City Schools:
Calculate the total cost of the Stow City job.
A) $8487.35
B) $7408.65
C) $7948.00
D) $8317.15
Correct Answer:
Verified
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