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Nike Inc. is a world leader in branded sports goods. Recently, Nike decided to extend it's brand into the manufacturing of baseball bats and wooden
Nike Inc. is a world leader in branded sports goods. Recently, Nike decided to extend it's brand into the manufacturing of baseball bats and wooden tops. Currently, Nike makes 6,500 baseball bats each month. Each bat uses $4.75 in direct materials and $4.25 in direct labor. Nike uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $9,750 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $15,600 a month, allocated on the basis of batches. The activity drivers are used as follows: Direct labor hours Batches Baseball bats Wooden tops 130 260 34 51 What is the total manufacturing cost for one baseball bat for Nike? Multiple Choice 0 $8.96 0 $9.00 0 $10.46 0 $11.44
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