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 CookerCharcoal Smoker  
Units10007000  
Number of batches4010  
Number of batch moves8020  
Direct materials50000100000  
Direct labor2000028000  
Manufacturing overhead follows:    
ActivityCostCost Driver  
Materials acquisition and inspection360000
Amount of direct materials cost
  
Materials movement16600Number of batch moves  
Scheduling30000Number 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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