ctivity-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 4,000 Number of batches 60 10 Number of batch moves 80 20 Direct materials $20,000 $100,000 Direct labor $20,000 $27,000 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection $288,000 Amount of direct materials cost Materials movement 16,900 Number of batch moves Scheduling 42,000 Number of batches $346,900 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 7.3809 for overhead rate calculations. Total cost Answer Gas Cooker Answer per unit Charcoal Smoker Answer 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 Answer Gas Cooker Answer per unit Charcoal Smoker Answer per unit PreviousSave AnswersNext

(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.

Gas Cooker:

total cost = $20,000 + $20,000 + $147,618 = $187,618

cost per unit = $187.62

Charcoal Smoker

total cost = $20,000 + $27,000 + $199,284 = $246,284

cost per unit = $61.57

(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.

Gas Cooker:

total cost = $20,000 + $20,000 + $48,000 + $13,520 + $36,000 = $137,520

cost per unit = $137.52

Charcoal Smoker

total cost = $100,000 + $27,000 + $240,000 + $3,380 + $6,000 = $376,380

cost per unit = $94.10

Explanation:

                                   Gas Cooker      Charcoal Smoker

Units                                1,000               4,000

Number of batches           60                   10

Number of batch moves   80                  20

Direct materials           $20,000          $100,000

Direct labor                 $20,000            $27,000

Manufacturing overhead follows:

Activity                               Cost                         Cost Driver

Materials acquisition  $288,000         Amount of direct

and inspection                                               materials cost

$48,000

$240,000

Materials movement$16,900                 Number of batch moves

$13,520

$3,380

Scheduling                $42,000                 Number of batches

$36,000

$6,000

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