Reference no: EM13483135

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