Baseball Products, Inc.

You are thenew production manager of a small manufacturing company, Baseball Products,Inc., which is located in Littletown, Montana. Your companymanufactures two primary products: baseball bats and baseball gloves. You havedecided to implement ABC Costing to allocate overhead costs associated withthese products.

Your taskis to design an ABC report to present to management. Be sure to show an allocation of the overheadcost to Bats and Gloves and proof that you did the allocation correctly.

You ask themanufacturing supervisor for the necessary data to apply ABC Costing. You areprovided with the following information.

Theactivities involved with manufacturing the bats and gloves in a week includethe following.

Activity Bats Gloves

Set-Ups 2 4

Machining 150 hours 350 hours

Receiving 30 receipts 70 receipts

Packing 250 deliveries 550 deliveries

Engineering 400 hours 600hours

Theoverhead costs per activity are as follows in a week.

Activity Cost

Set Ups $ 600

Machining $7,500

Receiving $3,000

Packing $16,000

Engineering $22,000

Total $49,100