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Allen, Inc. manufactures bookcases and uses an activity - based costing system. Allen's activity areas and related data follow: ( Click the icon to view
Allen, Inc. manufactures bookcases and uses an activitybased costing system. Allen's activity areas and related data follow:
Click the icon to view the activity areas and related data.
Allen produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The totals for quantities, direct materials costs, and other data follow:
Click the icon to view the totals for quantities, direct materials costs, and other data.
Read the requirements.
Data table
Requirement Compute the manufacturing product cost per unit of each type of bookcase. Enter a for any zerobalances.
marketing, and customer service. The postmanufacturing costs were $ per standard bookcase and $ per unfinished bookcase. Compute the full product costs per unit.
Data table
Requirements
Compute the manufacturing product cost per unit of each type of bookcase.
Suppose that premanufacturing activities, such as product design, were
assigned to the standard bookcases at $ each and to the unfinished
bookcases at $ each. Similar analyses were conducted
of postmanufacturing activities such as distribution, marketing, and customer
service. The postmanufacturing costs were $ per standard bookcase and
$ per unfinished bookcase. Compute the full product costs per unit.
Which product costs are reported in the external financial statements? Which
costs are used for management decision making? Explain the difference.
What price should Allen's managers set for unfinished bookcases to earn a
net nrofit of $ ner hookcase?
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