Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The
Question:
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 |
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield