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
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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 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 | 1000 | 7000 | ||
| Number of batches | 40 | 10 | ||
| Number of batch moves | 80 | 20 | ||
| Direct materials | 50000 | 100000 | ||
| Direct labor | 20000 | 28000 | ||
| Manufacturing overhead follows: | ||||
| Activity | Cost | Cost Driver | ||
| Materials acquisition and inspection | 360000 | Amount of direct materials cost | ||
| Materials movement | 16600 | Number of batch moves | ||
| Scheduling | 30000 | Number of batches | ||
| 406600 | ||||
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 8.4708 for overhead rate calculations. | ||||
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. |
10 years ago
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
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- copy_of_gas_cooker.xlsx