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.

Gas Cooker Charcoal Smoker

Units 1,000 5,000

Number of batches 70 10

Number of batch moves 80 20

Direct materials $20,000 $100,000

Direct labor $20,000 $29,000

Manufacturing overhead follows:

Activity	Cost	Cost Driver
Materials acquisition and inspection	$252,000	Amount of direct materials cost
Materials movement	16,700	Number of batch moves
Scheduling	48,000	Number of batches
	$316,700

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.

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	Answer
Gas Cooker	Answer	per unit
Charcoal Smoker	Answer	per unit