Question

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $26,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 2,000 hockey stick. Explain how?

Answer 1

Slapshot Company

The total production is $98,000 with a unit cost of $49 per hockey stick.

The selling price per unit should be above $49 when marked-up.

Step-by-step explanation:

a) Data and Calculations:

Direct materials (wood, paint, Kevlar, and resin) $26,000

Direct labor (10 workers x 100 hours x $20 per hour) 20,000

Manufacturing overhead equaled 52,000

Total production costs = $98,000

Production of hockey stick = 2,000 units

Unit cost of hockey stick = $49 ($98,000/2,000)