Slugger

Corporation produces baseball bats for kids that it sells for

$41

each. At capacity, the company can produce

59,000

bats a year. The costs of producing and selling

59,000

bats are provided in the accompanying table.

	Cost per Bat	Total Costs
Direct materials	$14	$826,000
Direct manufacturing labour	5	295,000
Variable manufacturing overhead	2	118,000
Fixed manufacturing overhead	4	236,000
Variable selling expenses	3	177,000
Fixed selling expenses	6	354,000
Total costs	$34	$2,006,000