Reference no: EM132581952

Question 1: 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.

Question 1: 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.

Gas Cooker

Units ................................................. 2,000

Number of batches.................................... 50

Number of batch moves ............................... 90

Direct materials ....................................... $70,000

Direct labor........................................... $44,000

Charcoal Smoker

Units ................................................. 8,000

Number of batches.................................... 20

Number of batch moves ............................... 50

Direct materials ....................................... $130,000

Direct labor........................................... $56,000

Manufacturing overhead follows:

Activity

Materials acquisition and inspection ............... Cost: $68,000 - Cost Driver: Amount of direct materials cost

Materials movement............................... Cost: $19,600 - Cost Driver: Number of batch moves

Scheduling ....................................... Cost: $43,4 00- Cost Driver: Number of batches

Total cost: $131,000