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 Cooker Charcoal Smoker

Units $1,0003,000$

Number of batches $2010$

Number of batch moves $8020$

Direct materials $$30,000$ $$100,000$

Direct labor $$20,000$ $$29,000$

Manufacturing overhead follows:

Activity Cost Cost Driver

Materials acquisition and inspection $$299,000$ Amount of direct materials cost

Materials movement $16,600$ Number of batch moves

Scheduling $18,000$ Number of batches

$$333,600$

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

Total cost Answer

$0$

Gas Cooker Answer

$0$

per unit

Charcoal Smoker Answer

$0$

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

$0$

Gas Cooker Answer

$0$

per unit

Charcoal Smoker Answer

$0$

per unit