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Activity-Based Costing and Conventional Costs Compared Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker The Cooker is

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Activity-Based Costing and Conventional Costs Compared Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker The Cooker is a premium product sold in upscale outdoor shops, the Smoker is sold in major discount stores. Following is information pertaining to the manufacturing costs for the current month. Units Number of batches Number of batch moves Direct materials Direct labor Gas Cooker Charcoal Smoker 3,000 10 20 $100,000 $21,000 1,000 50 80 $50,000 $20,000 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection Materials movement Scheduling 16,300 36,000 $367,300 $315,000 Amount of direct materials cost Number of batch moves Number of batches Rounding instructions: Do not round until your final answers. Round total cost answers to the nearest dollar and per unit answers to the nearest cent. (a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars. HINT: Use 8.9585 for overhead rate calculations Total cost Gas Cooker 0 per unit Charcoal Smoker 0 per unit (b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing. Total cost Gas Cooker 0 per unit Charcoal Smoker 0 per unit

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