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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. Gas Cooker Charcoal Smoker 2,000 8,000 Units Number of batches 50 20 Number of batch moves 90 50 Direct materials $ 70,000 $ 130,000 Direct labor $ 44,000 $ 56,000 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection $ 68,000 Amount of direct materials cost Materials movement 19,600 Numbers of batch moves Scheduling 43,400 Number of batches $ 131,000 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. (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. 0 Total cost $ Gas Cooker $ Charcoal Smoker $ 0 per unit o per unit (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. 0 Total cost $ Gas Cooker $ Charcoal Smoker $ O per unit 0 per unit Check
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