0. XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $ 1.00 in direct materials and $ 0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $ 7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $ 12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
0. XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $ 1.00 in direct materials and $ 0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $ 7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $ 12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...
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10. XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $ 1.00 in direct materials and $ 0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $ 7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $ 12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
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