Parker Woodworks manufactures baseball bats and wooden tops. Currently, Parker makes 5,100 baseball bats each month. Each bat uses $1.25 in direct materials and $.75 in direct labor. Parker uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,650 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,240 a month, allocated on the basis of batches. The products have the following activity demands:
Parker Woodworks manufactures baseball bats and wooden tops. Currently, Parker makes 5,100 baseball bats each month. Each bat uses $1.25 in direct materials and $.75 in direct labor. Parker uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,650 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,240 a month, allocated on the basis of batches. The products have the following activity demands:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Parker Woodworks manufactures baseball
bats and wooden tops. Currently, Parker
makes 5,100 baseball bats each month.
Each bat uses $1.25 in direct materials and
$.75 in direct labor. Parker uses two
activities in manufacturing the baseball
bats: Cutting and Finishing. The cost
associated with Cutting is $7,650 a month,
allocated on the basis of direct labor hours.
The cost associated with Finishing is
$12,240 a month, allocated on the basis of
batches. The products have the following
activity demands:
Direct labor hours
Batches.
Baseball
Bats
102
6
Wooden
204
9
What is the total manufacturing cost for
one baseball bat?
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