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0 Owen Corp. manufactures computer desks in its Austin, Texas, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and

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0 Owen Corp. manufactures computer desks in its Austin, Texas, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. B 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 $5 each and to the Unpainted desks at $2 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post-manufacturing costs were $22 per Standard and $19 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 Owen's managers set for Standard desks to earn a $39 profit per desk? 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 148850 Unpainted Desk 44050 Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Standard desks at $5 each and to the Unpainted desks at $2 each. Similar analyses were conducted of post-manufact activities such distrib mark and tomer service. The post-manu Requir ent 2. Premanufacturing such product design, were assigned Standard and $19 per Unpainted desk. Compute the full product costs per desk. costs were $22 per 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. are reported in the financial statements. Managers use V for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are 0 Owen Corp. manufactures computer desks in its Austin, Texas, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. B 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 $5 each and to the Unpainted desks at $2 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post-manufacturing costs were $22 per Standard and $19 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 Owen's managers set for Standard desks to earn a $39 profit per desk? 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 148850 Unpainted Desk 44050 Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Standard desks at $5 each and to the Unpainted desks at $2 each. Similar analyses were conducted of post-manufact activities such distrib mark and tomer service. The post-manu Requir ent 2. Premanufacturing such product design, were assigned Standard and $19 per Unpainted desk. Compute the full product costs per desk. costs were $22 per 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. are reported in the financial statements. Managers use V for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are

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