Data table Budgeted Cost Cost Allocation Activity of Activity Allocation Base Rate Materials handling . . . $ 300,000 Number of parts :5 0.80 Assembling ......... $ 2,400,000 Direct labor hours $ 15.00 Painting ............ $ 140,000 Number of painted desks $ 5.00 Prescott produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Total Direct Total Number Total Assembling Product Produced Materials Costs of Parts Direct Labor Hours Standard desk ..... 5,000 8 T9,100 120,500 6,300 Unpainted desk . . . . 2500 8 29,600 30500 900 -m Prescott Corp. manufactures computer desks in its Nashville: Tennessee. plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). lts activities and related data follow. 35 (Click the icon to view the activity areas and related data.) Read the muirements. Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input elds. Enter a \"0\" for any zero amounts. Round your answers to the nearest whole dollar.) Standard Desk Unpainted Desk Direct materials Materials handling Assembling Total manufacturing cost Number of units l l l Painting I l l l Manufacturing cost per unit Requirement 2. Premahufacturihg activities, such as product design, were assigned to the Standard desks at $6 each and to the Unpainted desks at 85 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were 822 per Standard and $21 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 nancial statements? Which costs are used for management decision making? Explain the difference. |:| are reported in the nancial statements. Managers use as pricing and product emphasis. Full product costs include the that are for decisions such expensed as incurred for external reporting. However, these costs often are Requirement 4. What price should Prescott's managers set for Standard desks to earn a $40 prot per desk? Sales price per unit - standard desk =