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Leue, Inc. makes two kinds of baseball gloves - the Beginner and the Pro. Below is some relevant information for the past year (unit means

Leue, Inc. makes two kinds of baseball gloves - the Beginner and the Pro. Below is some relevant information for the past year (unit means one baseball glove):

BeginnerPro
Number of units sold65,00010,000
Sales price per unit$65$100
Direct materials per unit$10$20
Direct labor dollars per unit$30$45
Cutting machine-hours per unit0.501.00
Direct labor-hours per unit2.003.00

Little League 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). Little League 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 is the total cost (direct materials, direct labor and indirect costs) of each Pro baseball glove?


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