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?

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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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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