Lawton, Inc. manufactures bookcases and uses an activity-based costing system. Lawton's activity areas and related data follow: (Click the icon to view the activity areas and related data.) Lawton 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.) Direct labor Direct materials Materials handling Assembling Finishing Total manufacturing cost Manufacturing cost per unit Standard Bookcase Unfinished Bookcase 60,000 46,000 56,000 55,200 6,000 4,600 stion 4 Data table - o) ty are Product Total Units Produced Total Direct Total Direct Materials Costs Labor Costs Total Number of Parts Total Assembling Direct Labor Hours bookd Standard bookcase 4,000 $ 56,000 $ 60,000 16,000 Unfinished bookcase 4,600 55,200 46,000 13,800 6,000 4,600 Data table Direct labor Direct materials. Print Done Standard Dookcase OmmisticU DOOKCAse 60,000 46,000 56.000 55.200 Activity Materials handling $ Assembly Finishing Budgeted Cost of Activity Allocation Base 230,000 Number of parts 3,400,000 Number of assembling direct labor hours 150,000 Number of finished units* Predetermined Overhead Allocation Rate 1.00 12.00 3.00 *Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done ter a Requirements 1. Compute the manufacturing product cost per unit of each type of bookcase. 2. Suppose that pre-manufacturing activities, such as product design, were assigned to the standard bookcases at $4 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 $23 per standard bookcase and $13 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 Lawton's managers set for unfinished bookcases to earn a net profit of $14 per bookcase? Print Done