Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials and $5 in direct labor per unit. Hayden has two activities: Cutting, which is applied at the rate of $5 per machine hour, and , Assembly which is applied at the rate of $25 per batch. This month, Hayden made 400 caps, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one cap?

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Hayden Co. manufactures baseball caps that sell for $40 each. Each cap uses $14 in direct materials and $5 in direct labor per unit. Hayden has two activities: Cutting, which is applied at the rate of $5 per machine hour, and , Assembly which is applied at the rate of $25 per batch. This month, Hayden made 400 caps, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one cap?

 

$21

$8

$35

$6 < is this?

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