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Activity-Based Costing and Conventional Costs Compared Hickory Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is
Activity-Based Costing and Conventional Costs Compared 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 matenials Direct labor 1,000 5,000 50 20 120,000 25,000 60,000 $20,000 Manufacturing overhead follows Cost Cost Driver Materials acquisition and inspection $50,800 Amount af direct materials cost 16,200 36000 $103,000 Materiais movemens Number of batch moues Number of batches 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 Round rate to four decimal places if applicable Manufacturing overhead based on direct labor dollars: 0 Use rounded overhead rate calculated abowe for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed per direct labor dollar Product Costs per Unit Gas Cooker Charcoal Simoker Direct labor 20000 25,000 Manufacturing overnead: Units Cost per unit
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