Leue, 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 $615,000, with direct labor-hours as the only allocation base.

Using traditional costing, what is the total cost (direct materials, direct labor and indirect costs) of each Pro baseball glove?

Answer rating: 100% (QA)

Using traditional costing with direct laborhours as the allocation base ... View the full answer