Diamond Cleats Co. manufactures cleats and baseball bats. It has outlined below the following over-head costs.

Support Activity	Budgeted Overhead	Cost Driver		Estimated Cost driver
Machine Time	$100,000	# of Machine Hrs		2,000
Quality Control	78,000	# of inspections		1,200
Materials Handling	1,200	# of batches		50
Other overhead costs	60,000	Direct Labor Hrs		5,000

Diamond Cleats Co. has on order for cleats and baseball bats that has the following production requirements.

Cleats Baseball Bats

Number of Machine Hours 220 275

Number of Inspections 75 125

Number of Batches 8 15

Direct Labor Hours 840 800

Units in Order 1,000 1,100

Diamond Cleats sells each pair of cleats for $75 a pair and sells each baseball bat for $65 a bat. Based on the information for the current order, create a product-line profitability analysis for both cleats and baseball bats.

Question 9 options: