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Can you do all four requirements, thank you Allen, Inc. manufactures bookcases and uses an activity-based costing system. Allen's activity areas and related data follow.
Can you do all four requirements, thank you
Allen, Inc. manufactures bookcases and uses an activity-based 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) Data Table Read the requirements. Requirement 1. Compute the manufacturing product cost per unit of each type of bookcase. (Enter a "0" for any Standard Bookcase Unfinished Bookcase 7 Predetermined Budgeted Cost of Overhead Activity Activity Allocation Base Allocation Rate Materials handling S 240,000 Number of parts $ 1.50 Assembly 3,500,000 Number of assembling direct labor hours 14.00 Finishing 150,000 Number of finished units 2.50 Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Total manufacturing cost i Requirements Manufacturing cost per unit i Data Table 1. Compute the manufacturing product cost per unit of each type of bookcase. 2. Suppose that pre-manufacturing activities, such as product design, were assigned to the standard bookcases at $6 each and to the unfinished bookcases at $5 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $22 per standard bookcase and $16 per unfinished bookcase. Compute the full product costs per unit 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 Allen's managers set for unfinished bookcases to eam a net profit of $17 per bookcase? Product Total Units Produced Total Assembling Direct Labor Hours 9,000 c Total Direct Total Direct Total Number Materials Costs Labor Costs of Parts $ 72,000 S 90,000 18,000 64,000 64,000 12,800 Standard bookcase 6.000 Unfinished bookcase 6.400 6,400 3 AllStep by Step Solution
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