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Please answer E18-22 (starting on page 848) and E18-23 on page 849. LO2, 3, 4 E18-22. Activity-Based Costing and Conventional Costs Compared Hickory Grill Company
Please answer E18-22 (starting on page 848) and E18-23 on page 849.
LO2, 3, 4 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 MBC Gas Cooker Charcoal Smoker 2,000 50 90 8,000 20 50 S70,000 $44,000 S130,000 $56,000 Direct labor. . _ _ _ _ . . . _ _ _ . . . . _ _ _ . . . . _ _ _ . . .. _ _ _ . . . ._.. Manufacturing overhead follows Activity Cost Cost Driver Materials acquisition and inspection . . . . . . . . . . . . S 68,000 Amount of direct materials cost 19,600 Number of batch moves 43.400 Number of batches $131,000 REQUIRED 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 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 bStep by Step Solution
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