Homework: Ch4-HW Question 1, PM4-34A (similar to) HW Score: 57.89%, 11.58 of 20 points Part 2 of 4 Points: 11.58 of 20 Save Prescott, Inc. manufactures bookcases and uses an activity-based costing system. Prescott's activity areas and related data follow: (Click the icon to view the activity areas and related data.) Prescott 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. Number of units 2,000 2,600 $ 59 40 Manufacturing cost per unit Requirement 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 $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $20 per standard bookcase and $15 per unfinished bookcase. Compute the full product costs per unit. Standard Bookcase Unfinished Bookcase Pre-manufacturing activities 59.00 42.00 Manufacturing product cost 6.00 3.00 Post-manufacturing activities 20 15 85 60.00 Full product cost per unitX HW Score: 57.89%, 11.58 of 20 points Sa Data table Points: 11.58 of 20 Predetermined Budgeted Cost of Overhead quires no finishing. The totals for quantities, direct materials costs, and other data follow: Activity Activity Allocation Base Allocation Rate Materials handling $ 220,000 Number of parts $ 1.50 Assembly 3,500,000 Number of assembling direct labor hours 15.00 Finishing 150,000 Number of finished units* 2.00 *Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory - X Requirements Data table 1. Compute the manufacturing product cost per unit of each type of bookcase. Total Units Total Direct Total Direct Total Number Total Assembling 2. Suppose that pre-manufacturing activities, such as product design, were Product Produced Materials Costs Labor Costs of Parts Direct Labor Hours assigned to the standard bookcases at $6 each and to the unfinished Standard bookcase 2,000 $ 24,000 $ 36,000 6,000 3,000 bookcases at $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The Unfinished bookcase 2,600 26,000 31,200 5,200 2,600 post-manufacturing costs were $20 per standard bookcase and $15 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 Prescott's managers set for unfinished bookcases to earn a Print Done net profit of $16 per bookcase?(Click the icon to view the activity areas and related data.) Prescott 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.) 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 $ 24,000 $ 26,000 Direct labor 36,000 31,200 Materials handling 9,000 7,800 Assembling 45,000 39,000 Finishing 4,000 Total manufacturing cost $ 118,000 $ 104,000 Number of units 2,000 2,600 59 $ 40 Manufacturing cost per unit Help me solve this Demodocs example Get more help - Clear all Final check