Question

Parsons and Sons Woodworks manufactures baseball bats and wooden tops. Currently, Parsons and Sons makes 6,000 baseball bats each month. Each bat uses $8.50 in direct materials and $3.00 in direct labor. Parsons and Sons uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $8.500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $14.000 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?

Multiple Choice
O $12.91
O $11.41
O $13.89
O $11.45

Answer 1

The total manufacturing cost for one baseball bat at Parsons and Sons Woodworks is calculated by summing direct materials, direct labor, and allocated overhead costs from cutting and finishing. After computation, the total cost comes to approximately $12.90 per bat, so the nearest choice presented is $12.91.

Step-by-step explanation:

The student has asked what is the total manufacturing cost for one baseball bat at Parsons and Sons Woodworks. To calculate this, we must consider the direct materials, direct labor, and both cutting and finishing costs.

First, we calculate the direct costs associated with one baseball bat, which are $8.50 for materials and $3.00 for labor, totaling $11.50.

Next, we allocate the overhead costs from the Cutting and Finishing processes to each bat. The Cutting costs are $8,500 per month. Since baseball bats use 1/3 of the direct labor hours, we calculate the per bat cost by dividing $8,500 by 3 (for the 1/3 proportion) and then by the number of bats (6,000), which gives us $0.47 per bat. The Finishing costs are $14,000 per month, and baseball bats use 40% of the batches. Similarly, we take 40% of $14,000 and then divide by the number of bats to allocate the cost, which gives us $0.93 per bat.

The total manufacturing cost for one baseball bat is the sum of the direct costs and the allocated overhead costs: $11.50 (direct costs) + $0.47 (Cutting costs) + $0.93 (Finishing costs) = $12.90.

Therefore, the correct answer from the multiple-choice options presented is $12.91 (assuming there is rounding off to the nearest cent).