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 SmokerUnits 1,000 3,000Number of batches 20 10Number of batch moves 80 20Direct materials $30,000 $100,000Direct labor $20,000 $29,000Manufacturing overhead follows:Activity Cost Cost DriverMaterials acquisition and inspection $299,000 Amount of direct materials costMaterials movement 16,600 Number of batch movesScheduling 18,000Number of batches $333,600Rounding 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.

Answer 1

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