Hickory 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. Units Number of batches Number of batch moves Direct materials Direct labor Gas Cooker Charcoal Smoker 2,000 8,000 50 90 $ 70,000 $ 44,000 Manufacturing overhead follows: Total cost $ Gas Cooker $ Charcoal Smoker S Activity Cost Cost Driver Materials acquisition and inspection $68,000 Amount of direct materials cost Materials movement 19,600 Numbers of batch moves Scheduling 43,400 Number of batches $131,000 427,000 x 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. 20 50 83.82 x per unit 32.42 per unit $ 130,000 $ 56,000 0x 75.2 x per unit 56.54 x 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 $ Gas Cooker $ Charcoal Smoker S
Hickory 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. Units Number of batches Number of batch moves Direct materials Direct labor Gas Cooker Charcoal Smoker 2,000 8,000 50 90 $ 70,000 $ 44,000 Manufacturing overhead follows: Total cost $ Gas Cooker $ Charcoal Smoker S Activity Cost Cost Driver Materials acquisition and inspection $68,000 Amount of direct materials cost Materials movement 19,600 Numbers of batch moves Scheduling 43,400 Number of batches $131,000 427,000 x 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. 20 50 83.82 x per unit 32.42 per unit $ 130,000 $ 56,000 0x 75.2 x per unit 56.54 x 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 $ Gas Cooker $ Charcoal Smoker S
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hickory 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.
Units
Number of batches
Number of batch moves
Direct materials
Direct labor
Total cost
Gas Cooker
$
$
Charcoal Smoker $
Gas Cooker Charcoal Smoker
2,000
8,000
20
50
Manufacturing overhead follows:
Activity
Cost
Cost Driver
Materials acquisition and inspection $68,000 Amount of direct materials cost
Materials movement
19,600 Numbers of batch moves
Scheduling
43,400 Number of batches
50
90
$70,000
$ 44,000
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.
$
$
Charcoal Smoker $
(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.
Total cost
Gas Cooker
$ 131,000
427,000 *
$ 130,000
$ 56,000
83.82 x per unit
32.42 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.
0x
75.2 x per unit
56.54 x per unit
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