Answer:
Instructions are below.
Explanation:
Giving the following information:
The rate used is 100 percent of direct labor costs.
Baseball Bats - Tennis Rackets:
Sales revenue= $ 1,580,000 $ 1,125,000
Direct labor= 320,000 160,000
Direct materials= 564,000 293,000
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Baseball= 320,000*1= 320,000
Tennis= 160,000*1= 160,000
Baseball:
Sales= 1,580,000
COGS= (320,000 + 564,000 + 320,000)= (1,204,000)
Gross profit= $376,000
Tennis:
Sales= 1,125,000
COGS= (160,000 + 293,000 + 160,000)= (613,000)
Gross profit= $512,000
