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.

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.

Gas Cooker

Units ................................................. 2,000

Number of batches.................................... 50

Number of batch moves ............................... 90

Direct materials ....................................... $70,000

Direct labor........................................... $44,000

Charcoal Smoker

Units ................................................. 8,000

Number of batches.................................... 20

Number of batch moves ............................... 50

Direct materials ....................................... $130,000

Direct labor........................................... $56,000

Manufacturing overhead follows:

Activity

Materials acquisition and inspection ............... Cost: $68,000 - Cost Driver: Amount of direct materials cost

Materials movement............................... Cost: $19,600 - Cost Driver: Number of batch moves

Scheduling ....................................... Cost: $43,4 00- Cost Driver: Number of batches

Total cost: $131,000