Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Corporate Valuation Fundamental Analysis, Asset Pricing, And Company Valuation

Authors: Pasquale De Luca

1st Edition

331993550X, 9783319935508

More Books

Students also viewed these Accounting questions

Question

2. Do not crowd the student. Do not get in the students face.

Answered: 1 week ago

Question

business plan and cash budget for a small business.

Answered: 1 week ago