Activity-Based Costing and Traditional Costs Compared Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and...
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Activity-Based Costing and Traditional Costs Compared Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and charcoal smokers. Assume that Cuisinart only makes a single model of each product and that the following informa- tion pertains to the total manufacturing costs for the products in the current month. Units ..... Number of batches. Number of machine hours Direct materials. Direct labor. Gas Cooker 4,000 80 16,000 $225,500 $100,683 Charcoal Smoker 3,500 35 3,000 $108,500 $50,341 Manufacturing overhead follows: Cost Activity Materials acquisition and inspection.. Product assembly.. Scheduling ... $ 50,100 123,500 15,180 Cost Driver Amount of direct materials cost Number of machine hours Number of batches $188,780 a. REQUIRED Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead related to these two products is assigned on the basis of direct labor dollars. b. Determine the total and per-unit costs of manufacturing the Gas C @nd Charcoal Smoker for the month, assuming manufacturing overhead is assigned using ity-based costing
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