Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Johnson Corp manufacturers computers desk in it's Buffalo New York plant. The company uses activity based on costing to allocate all manufacturing conversion cost direct
Johnson Corp manufacturers computers desk in it's Buffalo New York plant. The company uses activity based on costing to allocate all manufacturing conversion cost direct labor and manufacturing overhead it's activities and related data follow. 1) Compute the per unit manufacturing product cost of standard desks and unpainted desks. 2) pre manufacturing activities such as product design, were assigned to the standard desk at $4 each and to the unpainted desk at $3 each. Similar analysis were conducted of post manufacturing activities, such as distribution, marketing, and customer service. The post manufacturing cost were $22 per standard and $21 per unpainted desk. Compute the full product cost per desk. 3) Which product cost are reported in the external financial statements which costs are used to management decision making explain the difference. 4) What price should Johnson's managers set for Standard desks to earn a $42 profit per desk
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started