EXPLAIN WITH FORMULAS AND ANSWERS

EXPLAIN WITH FORMULAS AND ANSWERS

EXPLAIN WITH FORMULAS AND ANSWERS

EXPLAIN WITH FORMULAS AND ANSWERS

E18-22. 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 cur- rent month. Gas Cooker Charcoal Smoker 8,000 20 Units ....... Number of batches..... Number of batch moves.... Direct materials.. Direct labor.. 2,000 50 90 $70,000 $44,000 50 $130,000 $56,000 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection ....... Materials movement...... Scheduling ... $ 68,000 19,600 43,400 $131,000 Amount of direct materials cost Number of batch moves Number of batches a) Determine the total and per-unit cost of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars. 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