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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
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 1.000 2,000 Number of batches 20 $50,000 $100,000 $20,000 $21,000 Units 10 80 Number of hatch mraves Direct materials Direct labor Manufacturing owerhead follows Activity Cast Cost Driver Materials acquisition and inspection $315,000 Amount of direct materials cost Materials movement 16,300 Number of batch moves Scheduling 35,000 Number of batches 5367,300 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 Charcoal Smoker $ $ per unit per unit (b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing averhead is assigned using activity-based costing, Total cost $ Gas Cooker $ Charcoal Smoker $ perunt per unt
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