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 SmokerUnits$1,0003,000$Number of batches$2010$Number of batch moves$8020$Direct materials$$30,000$$$100,000$Direct labor$$20,000$$$29,000$

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Manufacturing overhead follows:

ActivityCostCost DriverMaterials acquisition and inspection$$299,000$Amount of direct materials costMaterials movement$16,600$Number of batch movesScheduling$18,000$Number of batches$$333,600$

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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.

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$($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 $6\mathrm{.}8082$ for overhead rate calculations.

Total costAnswer $1$Gas CookerAnswer $2$per unitCharcoal SmokerAnswer $3$per unit

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$($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 costAnswer $4$Gas CookerAnswer $5$per unitCharcoal SmokerAnswer $6$per unit