a. Comment on the differences between the solutions to requirements (a) and (b). Which is more

accurate? What errors might managers make if all manufacturing overhead costs are assigned

on the basis of direct labor dollars?

b. Cuisinarts manufacturing process has become increasingly automated over the past few

years. Discuss how this will likely impact its ability to accurately measure product costs.

c. Comment on the adequacy of the preceding data to meet managements needs

leau rate for the Mining LO2, 3, 4 Conair Corporation Department and a direct labor hour overhead rate for the Finishing Department (see E18-20). E18-22. 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. ( MBC Gas Cooker Charcoal Smoker 3,500 Units .... Number of batches. Number of machine hours Direct materials. Direct labor. 4,000 80 16,000 $225,500 $100,683 35 3,000 $108,500 $50,341 Manufacturing overhead follows: Cost Cost Driver Activity Materials acquisition and inspection.. Product assembly. Scheduling $ 50,100 123,500 15,180 Amount of direct materials cost Number of machine hours Number of batches $188,780 REQUIRED leau rate for the Mining LO2, 3, 4 Conair Corporation Department and a direct labor hour overhead rate for the Finishing Department (see E18-20). E18-22. 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. ( MBC Gas Cooker Charcoal Smoker 3,500 Units .... Number of batches. Number of machine hours Direct materials. Direct labor. 4,000 80 16,000 $225,500 $100,683 35 3,000 $108,500 $50,341 Manufacturing overhead follows: Cost Cost Driver Activity Materials acquisition and inspection.. Product assembly. Scheduling $ 50,100 123,500 15,180 Amount of direct materials cost Number of machine hours Number of batches $188,780 REQUIRED