XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball batseach month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses twoactivities 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 $12,000a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of totalbatches. What is the total manufacturing cost for one baseball bat?O a. $3.46O b. None of the given answer is correct.O c. $3.5O d. $2.96O e. $3

Solution: Particulars Cost (per Basketball bat) Direct material 1.00 Direct labour 0.50…

XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,00 each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated wi $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finis a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, a batches. What is the total manufacturing cost for one baseball bat? O a. $3.46 O b. None of the given answer is correct. О с. O c. $3.5

XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,00 each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated wi $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finis a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, a batches. What is the total manufacturing cost for one baseball bat? O a. $3.46 O b. None of the given answer is correct. О с. O c. $3.5

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9PA: Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to...

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