Question
Activity-Based Costing and Conventional Costs Compared Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and charcoal smokers. Assume that Cuisinart only makes a single model
Activity-Based Costing and Conventional Costs Compared
Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and charcoal smokers. Assume that Cuisinart only makes a single model of each product and that the following information pertains to the total manufacturing costs for the products in the current month.
Gas CookerCharcoal SmokerUnits4,0003,500Number of batches8035Number of machine hours16,0003,000Direct materials$ 225,500$ 108,500Direct labor$ 100,683$ 50,341
Manufacturing overhead follows:
ActivityCostCost DriverMaterials acquisition and inspection$ 50,100Amount of direct materials costProduction assembly123,500Numbers of machine hours Scheduling15,180Number of batches$ 188,780
Rounding instructions:Do not round until your final answers. Round total cost answersto the nearest dollar andper unitanswers 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 related to these two products assigned on the basis of direct labor dollars.
Total cost
Gas Cooker
per unitCharcoal Smoker
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
per unitCharcoal Smoker
per unit
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