Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing its operating budget for the coming year. Selected data regarding the company’s two products are as follows:

Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead is projected to be $25,000, and fixed manufacturing overhead is expected to be $15,000. The estimated cost to produce one unit of the laminated putter head is:

a. $42.

b. $46.

c. $52.

d. $62.

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Putter Heads Forged Laminated Raw materials: 1 pound @ $5/lb. 1 pound @ $15/lb. 1 hour @ $22/hr. Steel 2 pounds @ $5/lb. Copper None 4 hour @ $20/hr. Direct labor Expected sales (units) Selling price per unit Ending inventory target (units) 8,200 $30 2,000 $80 100 60 300 Beginning inventory (units) 60 $5,250 $3,120 Beginning inventory (cost)