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Business, 21.06.2020 04:57 daniel1480

Little League, Inc. makes two kinds of baseball gloves - the Beginner and the Pro. Below is some relevant information for the past year (unit means one baseball glove): Beginner Pro Number of units sold 65,000 10,000 Sales price per unit $65 $100 Direct materials per unit $10 $20 Direct labor dollars per unit $30 $45 Cutting machine-hours per unit 0.50 1.00 Direct labor-hours per unit 2.00 3.00 Little League is considering the use of activity-based costing, although it currently uses traditional (simple) costing, (meaning it uses just one pool of overhead costs and one allocation base). Little League is doing some analysis at year-end to see which costing method is best. Little League incurred total overhead costs for the year of $940,000, with direct labor-hours as the only allocation base. Using traditional costing, the indirect cost rate is per direct labor-hour. $22.12 $5.875 $2.50 $11.75

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