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Parsons and Sons Woodworks manufactures baseball bats and wooden tops. Currently, Parsons and Sons makes...

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Accounting

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 13 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
Multiple Choice
$1.50
$1,46
$2.96
$3.94
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