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.

Manufacturing overhead follows:

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 $8\mathrm{.}4708$ 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