Determin the total and per-unit cost of manufacturing the

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Reference no: EM13485797

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

Reference no: EM13485797

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