Using data from December and an ABC method....

1. calculate the conversion costs per unit for each of the three types of bricks. (identify the fuel cost, grinding cost, other cost, and hand-grinding cost assigned to each type of brick)
2. calculate the manufacturing costs per unit for each type of brick.
3. calculate the selling price appropriate for each type of brick.

Exhibit 2. Conversion Costs for December This table provides a breakdown of the total conversion costs into smaller cost pools. Fuel costs include the amount paid to the gas utility provider for fuel. Grinding costs include depreciation of grinding machines, labor for grinding, and the cost of grinding wheels. Hand grinding costs include depreciation of hand-grinding machines, labor for hand-grinding, and the costs of hand-grinding wheels. Other costs include manufacturing costs that are fixed or costs of activities that are carried out the same regardless of product types. Exhibit 3. December Customer Activity *500 of the HB27 ordered by Chemical also required hand grinding. This table provides a breakdown of the units produced across customers. Exhibit 1. Firebrick Production Information This table provides a summary of the amount of BTUs used for each product type, material cost information for each product type, and the current selling price. Exhibit 2. Conversion Costs for December This table provides a breakdown of the total conversion costs into smaller cost pools. Fuel costs include the amount paid to the gas utility provider for fuel. Grinding costs include depreciation of grinding machines, labor for grinding, and the cost of grinding wheels. Hand grinding costs include depreciation of hand-grinding machines, labor for hand-grinding, and the costs of hand-grinding wheels. Other costs include manufacturing costs that are fixed or costs of activities that are carried out the same regardless of product types. Exhibit 3. December Customer Activity *500 of the HB27 ordered by Chemical also required hand grinding. This table provides a breakdown of the units produced across customers. Exhibit 1. Firebrick Production Information This table provides a summary of the amount of BTUs used for each product type, material cost information for each product type, and the current selling price