Question
Thank you in advance for answering this, struggling a bit as I keep getting wrong answers Diamond Cleats Co. manufactures cleats and baseball bats. It
Thank you in advance for answering this, struggling a bit as I keep getting wrong answers
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 Hours | 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
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