C18-20). E18-22. Activity-Based Costing and Conventional Costs Compared Hickory Grill Company manufactures two types of cooking grills: the Gas Cooker an Smoker. The Cooker is a premium product sold in upscale outdoor shops: the Sma major discount stores. Following is information pertaining to the manufacturing ce rent month. Cooker and the Charcoal the Smoker is sold in nufacturing costs for the cur- Gas Cooker Units........ Number of batches........ Number of batch moves... Direct materials ... Direct labor.. 2,000 50 90 $70,000 $44,000 Charcoal Smoker 8,000 20 50 $130,000 $56,000 Manufacturing overhead follows: Cost Activity Materials acquisition and inspection ............ Materials movement. ..... Scheduling $ 68,000 19,600 43,400 $131,000 Cost Driver Amount of direct materials cost Number of batch moves Number of batches REQUIRED a. Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal for the month, assuming all manufacturing overhead is assigned on the basis of de dollars. Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal for the month, assuming manufacturing overhead is assigned using activity-based siyi deer Chapter 18 Activity-Based Costing, Customer Profitability, and Activity-Base 618-23. Activity-Based Costing Versus Conventional Costing Refer to the previous exercise in E18-22 for Hickory Grill. REQUIRED a. 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? b. Hickory Grill'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