Corp. manufactures computer desks in its

PittsburghPittsburgh,

PennsylvaniaPennsylvania,

plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow.

LOADING...

(Click the icon to view the activity areas and related data.)

Requirements

1.	Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks.
2.	Premanufacturing activities, such as product design, were assigned to the Standard desks at $ 4$4 each and to the Unpainted desks at $ 2$2 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post-manufacturing costs were $ 24$24 per Standard and $ 22$22 per Unpainted desk. Compute the full product costs per desk.
3.	Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference.
4.	What price should Johnston'sJohnston's managers set for Standard desks to earn a $ 44$44 profit per desk? Budgeted Cost Cost Activity of Activity Allocation Base Allocation Rate Materials handling. . . $320,000 Number of parts $0.60 Assembling. . . . . . . . $2,300,000 Direct labor hours $16.00 Painting. . . . . . . . . . . $150,000 Number of painted desks $5.10 JohnstonJohnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Total Direct Total Total Assembling Units Materials Number Direct Labor Product Produced Costs of Parts Hours Standard desk. . . . . . . 7,500 $177,150 118,500 6,000 Unpainted desk. . . . . 2,000 $42,500 28,500 900 PrintDone Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input boxes. Enter a "0" for any zero amounts. Round your answers to the nearest whole dollar.) Standard Desk Unpainted Desk Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $ 4$4 each and to the Unpainted desks at $ 2$2 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $ 24$24 per Standard and $ 22$22 per Unpainted desk. Compute the full product costs per desk. Standard Desk Unpainted Desk Full product cost per unit Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. Full product costs Manufacturing product costs are reported in the financial statements. Managers use full product costs manufacturing product costs for decisions such as pricing and product emphasis. Full product costs include the costs of premanufacturing and post-manufacturing activities direct manufacturing costs only indirect direct manufacturing costs only manufacturing costs only that are expensed as incurred for external reporting.However, these costs often are assigned to products for internal decisions ignored for the purposes of internal decision making . Requirement 4. What price should Johnston'sJohnston's managers set for Standard desks to earn a $ 44$44 profit per desk? Sales price per unit - standard desk