Question

Gas Cooker 2,000 50 Charcoal Smoker 8,000 20 Units Number of batches......... Number of batch moves.......................... Direct materials ................................... Direct labor...................... 50 $70,000 $44,000 $130,000 $56,000 Manufacturing overhead follows: Cost Cost Driver Activity Materials acquisition and inspection .......... Materials movement............................... Scheduling ..... $ 68,000 19,600 43,400 Amount of direct materials cost Number of batch moves Number of batches $131,000 REQUIRED Determine the total and per-unit costs of marrufacturing the Gas Cooker and Charoeul Smoker o the month ouming at mamfacturing merhead ismasignad. on the basis of direct Inho dottars 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. CamScanner

total and per unit costs using activity-based costing

Answer 1

Activity	Cost	Cost Driver	Quantity	Cost per cost driver
Material Acquisition and Inspection	$    68,000.00	Amount of Direct Materials Cost	$ 200,000.00	$                 0.34
Materials Movement	$    19,600.00	Number of Batch Moves	140	$            140.00
Scheduling	$    43,400.00	Number of Batches	70	$            620.00

Allocation of Manufacturing Overhead
Activity	Gas Cooker	Charcoal Smoker
Material Acquisition and Inspection	$    23,800.00	$             44,200.00
Materials Movement	$    12,600.00	$                7,000.00
Scheduling	$    31,000.00	$             12,400.00
Total Manufacturing Overhead	$    67,400.00	$             63,600.00
Direct Material	$    70,000.00	$           130,000.00
Direct Labor	$    44,000.00	$             56,000.00
Total Manufacturing Cost	$ 181,400.00	$           249,600.00
Units	2000	8000
Manufacturing Cost per unit	$            90.70	$                      31.20

Working

Allocation of Manufacturing Overhead
Activity	Gas Cooker	Charcoal Smoker
Material Acquisition and Inspection	=70000*0.34	=130000*0.34
Materials Movement	=90*140	=50*140
Scheduling	=50*620	=20*620