Hickory Grill Company manufactures two types of grills:the gas cooker and charcoal smoker. the cooker is a premium product sold in upscale outdoor shops; the smoker is sold in major discount stores. Following is information pertaning to the manufacturing cost for the current month.
Gas Cooker Charcoal Smoker
Units 1,000 5,000
Number of baches 50 10
number of batch moves 80 20
direct materials $40,000 $100,000
Direct labor $20,000 $25,000
Manufacturing overhead follows:
Activity Cost Cost Driver
materials aquisition and inspection $30,800 amount of direct material cost
Material Movement 16,200 Number of batches moved
Scheduling 36,000 number of batches
$83,000
Required:
A) Determin the total and per-unit cost of manufacturing the gas cooker and charcoal smoker for the month, assuming all manufacturing orvehead is assigned on the basis of direct labor cost.
B) Determin the total and per-unit cost of manufacturing the gas cooker and the charcoal smoker for the month, assuming manufacturing overhead is assigned using activity-base costing