EcoSkate makes skateboards from recycled plastic. For a recent job lot of 125 skateboards, the company incurred direct materials costs of $1,500 and direct labor costs of $250. Overhead is applied using a rate of 150% of direct materials costs. Required: a. What is the total manufacturing cost of this job lot? b. What is the cost per skateboard?
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Home » Business » EcoSkate makes skateboards from recycled plastic. For a recent job lot of 125 skateboards, the company incurred direct materials costs of $1,500 and direct labor costs of $250. Overhead is applied using a rate of 150% of direct materials costs.