Johnston Corp. manufactures computer desks in its Pheonix, Arizona, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. (Click the icon to view the activity areas and related data.) Read the requirements. Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" for any zero amounts. Round your answers to the nearest whole dollar.) */ Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Standard Desk Unpainted Desk Data table Activity Budgeted Cost of Activity Cost Allocation Allocation Base Rate Materials handling. . . $ 280,000 Number of parts $ 0.90 Assembling 2,400,000 Direct labor hours $ 13.00 Painting 150,000 Number of painted desks $ 5.10 Johnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Product Units Produced Total Direct Materials Costs Total Number of Parts Total Assembling Direct Labor Hours Standard desk. . . . . . 5,500 $ 47,100 118,500 5,900 Unpainted desk . . . . 3,000 $ 77,550 28,500 600 Print Done Requirements 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $5 each and to the Unpainted desks at $2 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post-manufacturing costs were $24 per Standard and $23 per Unpainted desk. Compute the full product costs per desk. 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 Johnston's managers set for Standard desks to earn a $44 profit per desk? Print Done