BES lishers Age Business Publishers urs in sin Chapter 18 Activity-Based Costing. Customer Prothability, and Activity-Banent Managemene 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, Activity-Based Costing Versus Traditional Costing L01, 3, 4 Refer to the previous exercise in E18-22 for Cuisinart. 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? Cuisinart's 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 management's needs. REQUIRED ent (see 18- Wom d. Calculate the Department and a direct labor hour ow LO2, 3, 4 E18-22. Activity-Based Costing and Traditional Costs Compared soren Conair Corporation Cuisinart, a Conair Corporation, manufactures outdoor gas cookers and charcoal Assume that Cuisinart only makes a single model of each product and that the following wome tion pertains to the total manufacturing costs for the products in the current month. Gas Cooker Charcoal Smoker 3,500 4,000 80 Units Number of batches Number of machine hours Direct materials. Direct labor. 16,000 $225,500 $100,683 35 3,000 $108,500 $50.341 Manufacturing overhead follows: E18- Cost Cost Driver Activity Materials acquisition and inspection.. Product assembly. Scheduling $ 50,100 123,500 15,180 $188,780 Amount of direct materials cost Number of machine hours Number of batches REQUIRED a. 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