Activity-Based Costing and Conventional Costs Compared Gordon Ram Company manufactures two types of cooking grills:...
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Activity-Based Costing and Conventional Costs Compared Gordon Ram 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 | 3,000 |
| Number of batches | 50 | 10 |
| Number of batch moves | 80 | 20 |
| Direct materials | $50,000 | $100,000 |
| Direct labor | $20,000 | $21,000 |
Manufacturing overhead follows:
| Activity | Cost | Cost Driver |
|---|---|---|
| Materials acquisition and inspection | $315,000 | Amount of direct materials cost |
| Materials movement | 16,300 | Number of batch moves |
| Scheduling | 36,000 | Number of batches |
| $367,300 |
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. (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 |
*Provide answer in number not in text or will dislike
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