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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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?

a. $3.46

b. $3.5

c  None of the given answer is correct

d. $3

e. $2.96

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