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Beginner Pro Number of units sold 65,000 10,000 Sales price per unit $65 $100 Direct materials per unit $10 $20 Direct labor dollars per unit
Beginner | Pro | |||
Number of units sold | 65,000 | 10,000 | ||
Sales price per unit | $65 | $100 | ||
Direct materials per unit | $10 | $20 | ||
Direct labor dollars per unit | $30 | $45 | ||
Cutting machine-hours per unit | 0.50 | 1.00 | ||
Direct labor-hours per unit | 2.00 | 3.00 |
Mars is considering the use of activity-based costing, although it currently uses traditional (simple) costing, (meaning it uses just one pool of overhead costs and one allocation base). Mars is doing some analysis at year-end to see which costing method is best. Little League incurred total overhead costs for the year of $615,000, with direct labor-hours as the only allocation base.
Using traditional costing, what are the total indirect costs allocated to each Beginner baseball glove?
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