# 3 options -full product cost, manufacturing product,

costs of premanufacturing and post manufacturing activities, direct manufacturing cost only, indirect manufacturing cost only, manufacturing cost only

- assigned to products for internal decisions, ignored for the purpose of internal decision making

- costs of premanufacturing and post manufacturing activities, direct manufacturing cost only, indirect manufacturing cost only, manufacturing cost only

requirement 4 options

-desired profit, full product costs, manufacturing cost per unit

i Data Table Budgeted Cost Cost Activity of Activity Allocation Base Allocation Rate Materials handling ... $ 300,000 Number of parts 0.60 Assembling ........$ 2,200,000 Direct labor hours $ 15.00 Painting ................ $ 190,000 Number of painted desks $ 5.00 Hone produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Produced 7,000 3,000 Product Total Direct Materials Costs $ 153,900 $ 56,400 Total Number of Parts 118,500 Total Assembling Direct Labor Hours 6,000 900 Standard desk ....... Unpainted desk ....... 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 $6 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 $24 per Standard and $23 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 Hone's managers set for Standard desks to earn a $41 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 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 $6 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 $24 per Standard and $23 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. 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 Requirement 4. What price should Hone's managers set for Standard desks to earn a $41 profit per desk? Sales price per unit - standard desk