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 $12,500 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat? O a. $3.5 O b. None of the given answer is correct. C. $3.46 d. $2.96 e. $3

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $12,500 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct
labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
a. $3.5
O b. None of the given answer is correct.
O c. $3.46
d. $2.96
e.
$3
Transcribed Image Text: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 $12,500 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat? a. $3.5 O b. None of the given answer is correct. O c. $3.46 d. $2.96 e. $3
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