REQUIRED

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 is assigned

on the basis of direct labor dollars.

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.

al. Calculate the cost of Job o45 using a machine four departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department (see E18-20). LO2, 3, 4 E18-22. Activity-Based Costing and Traditional Costs Compared Conair Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and charcoal smokers. Corporation Assume that Cuisinart only makes a single model of each product and that the following informa- MBC tion pertains to the total manufacturing costs for the products in the current month. Gas Cooker Charcoal Smoker Units . . .. 4,000 3,500 Number of batches . . 80 35 Number of machine hours 16,000 3,000 Direct materials. . . ... $225,500 $108,500 Direct labor . . .. $100,683 $50,341 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection. . .... $ 50,100 Amount of direct materials cost Product assembly . . . . . ... 123,500 Number of machine hours Scheduling . .. . . . . 15,180 Number of batches $188,780 REQUIRED