Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Jul 2017 My Price 5.00

Chef Grill Company

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 Smoker
Units 1,000 4,000
Number of batches 60 10
Number of batch moves 80 20
Direct materials $20,000 $100,000
Direct labor $20,000 $27,000

 

Manufacturing overhead follows:

Activity Cost Cost Driver
Materials acquisition and inspection $288,000 Amount of direct materials cost
Materials movement 16,900 Number of batch moves
Scheduling 42,000 Number of batches
  $346,900  

 

Rounding 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.

HINT: Use 7.3809 for overhead rate calculations.

Total cost $Answer  
Gas Cooker $Answer per unit
Charcoal Smoker $Answer per unit

 

(b) 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.

Total cost $Answer Gas Cooker $Answer per unit Charcoal Smoker $Answer per unit

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jul 2017 10:07 PM My Price 5.00

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