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ArtVan produces baseball bats and wooden tops. Currently, ArtVan makes 6,300 baseball bats each month. Each...

ArtVan produces baseball bats and wooden tops. Currently, ArtVan makes 6,300 baseball bats each month. Each bat uses $4.25 in direct materials and $3.75 in direct labor. ArtVan uses two activities in manufacturing the baseball bats: Cutting and Finishing. The overhead cost associated with Cutting is $9,450 a month, allocated on the basis of direct labor hours. The overhead cost associated with Finishing is $15,120 a month, allocated on the basis of batches. The activity drivers are used as follows:

Baseball bats Wooden tops
Direct labor hours

126

252
Batches

30

45


What is the total manufacturing cost for one baseball bat?

Multiple Choice

  • $7.96

  • $8.00

  • $9.46

  • $10.44

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