MARIELLE Johnston Corp. manufactures computer desks in its Nashville, Tennessee, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. B! Click the icon to view the activity areas and related data.) Read the requirements. Data table Budgeted Cost Cost Allocation Activity of Activity Allocation Base Rate Materials handling $ 290,000 Number of parts 0.60 Assembling $ 2,600,000 Direct labor hours 15.00 Painting $ 150,000 Number of painted desks $ 5.20 Johnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Total Direct Produced Materials Costs Product Standard desk 7,000 Total Number Total Assembling of Parts Direct Labor Hours 121,500 5,800 31,500 1,000 $ 125,700 Unpainted desk 1,500 $ 3,600 a PS Print Done - X 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 $4 each and to the Unpainted desks 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 and $21 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 $40 profit per desk? CH Print Done air 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.) Standard Desk Unpainted Desk Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $4 each and to the Unpainted desks 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 and $21 per Unpainted desk. Compute the full product costs per desk. Standard Desk Unpainted Desk Full product cost per unit Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. are reported in the financial statements. Managers use for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are ston's managers set for Standard desks to earn a $40 profit per desk? Full product costs Manufacturing product costs Sales price per unit - standard desk poslaluidclumnya dack Desk costs of premanufacturing and post-manufacturing activities direct manufacturing costs only indirect direct manufacturing costs only ial statements? Which costs are used for management decision making? Explain the difference. manufacturing costs only Managers use for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are Requirement 4. What price should Johnston's managers set for Standard desks to earn a $40 profit per desk? Sales price per unit - standard desk Requirement 3. Which product costs are reported in the external financial statements? Which costs are used for management decision making? Explain the difference. are reported in the financial statements. Managers use for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are Sony Requirement 4. What price should Johnston's managers set for Standard desks to earn a $40 profit per desk? assigned to products for internal decisions Sales price per unit - standard desk ignored for the purposes of internal decision making Requirement 4. What price should Johnston's managers set for Standard desks to earn a $40 profit per desk? Sales price per unit - standard desk