Question
Mark, Inc. makes two kinds of baseball gloves - the Beginner and the Pro. Below is some relevant information for the past year (unit means
Mark, 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):
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 |
Mark breaks total indirect costs into two different cost pools, with corresponding cost-allocation bases: cutting costs of $255,000, with cutting machine-hours as the allocation base, and stitching costs of $360,000, with direct labor-hours as the allocation base.
Using activity-based costing, what is the total cost (direct materials, direct labor, and indirect costs) of each Beginner baseball glove?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started