Parsons and Sons Woodworks manufactures baseball bats and wooden tops. Currently, Parsons and Sons makes 5,000 baseball bats each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. Parsons and Sons uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat

Parsons and Sons Woodworks

The total manufacturing cost for one baseball bat is:

= $2.96.

Explanation:

a) Data and Calculations:

Quantity produced monthly = 5,000 baseball bats

Direct materials per unit = $1.00

Direct labor per unit =         0.50

Manufacturing overhead     1.46

Total unit cost =                $2.96

Allocation of manufacturing overhead to baseball bats:

                                         Cutting       Finishing

Monthly overhead cost   $7,500        $12,000

Cost usage by bats          1/3                 40%

Cost by bats                   $2,500        $4,800

Total overhead costs = $7,300

Unit cost per bat = $1.46

b) The total manufacturing cost for one baseball bat is made up of the costs of direct material, direct labor, and manufacturing overhead per unit.

answer; (a) conduct a worksite inspection;