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.

Required:
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.
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.

Transcribed Image Text:

Charcoal Smoker 5,000 10 20 Gas Cooker Units Number of baches number of batch moves direct materials Direct labor Manufacturing overhead follows: Activity materials aquisition and inspection Material Movement Scheduling 1,000 50 80 S40,000 $20,000 $100,000 $25,000 Cost Cost Driver $30,800 amount of direct material cost 16,200 Number of batches moved 36,000 $83,000 number of batches