Data table Product Standard bookcase Total Units Produced Total Direct Total Direct Total Number: Materials Costs Labor Costs Total Assembling Direct Labor Hours. of Parts 7,000 $ 84,000 $ 105,000 21,000 10,500 Unfinished bookcase. 7,400 74,000 74,000 14,800 7,400 Print Done McKnight, Inc. manufactures bookcases and uses an activity-based costing system. McKnight's activity areas and related data follow: (Click the icon to view the activity areas and related data.) McKnight 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. Requirement 1. Compute the manufacturing product cost per unit of each type of bookcase. (Enter a "0" for any zero-balances.) Standard Bookcase Unfinished Bookcase Direct materials 84000 74000 Direct labor 105000 74000 Materials handing 21000 14800 Assembling 91000 96200 Finishing 21000 22200 322000 281200 Total manufacturing cost 7000 7400 Number of units 46 38 Manufacturing cost per unit Requirement 2. Suppose that pre-manufacturing activities, such as product design, were assigned to the standard bookcases at $5 each and to the unfinished McKnight, Inc. manufactures bookcases and uses an activity-based costing system. McKnight's activity areas and related data follow: Click the icon to view the activity areas and related data.) McKnight produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The tota 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. bookcases at $4 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $23 per standard bookcase and $16 per unfinished bookcase. Compute the full product costs per unit. Pre-manufacturing activities Standard Bookcase Unfinished Bookcase 5 46 Manufacturing product cost Post-manufacturing activities Full product cost per unit 23 74 38 16 58 Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. Manufacturing product costs, which include costs of pre-manufacturing, manufacturing, and post-manufacturing activities are reported in the financial statements. Managers use full product costs which include costs of pre-manufacturing, manufacturing, and post-manufacturing activities, for decisions such as pricing and product emphasis McKnight, Inc. manufactures bookcases and uses an activity-based costing system. McKnight's activity areas and related data follow: (Click the icon to view the activity areas and related data.) McKnight produced two styles of bookcases in October: the standard bookcase and an unfinished bookcase, which has fewer parts and requires no finishing. The 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. Standard Bos untinisnea bse Pre-manufacturing activities. 5 4 Manufacturing product cost 46 38 Post-manufacturing activities 23 16 Full product cost per unit 74 58 Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the differen Manufacturing product costs, which include costs of pre-manufacturing, manufacturing, and post-manufacturing activities are reported in the financial statements Managers use full product costs which include costs of pre-manufacturing, manufacturing, and post-manufacturing activities, for decisions such as pri and product emphasis. Requirement 4. What price should McKnight's managers set for unfinished bookcases to earn a net profit of $17 per bookcase? To earn a net profit of $17 per bookcase, McKnight's managers should charge 58