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McKnight Corp. manufacture computer desks in its Nashvile. Tennessee. plant. The company uses activity-based costng to alocate al manufacturing conversion costs (direct labor and manutactunng
McKnight Corp. manufacture computer desks in its Nashvile. Tennessee. plant. The company uses activity-based costng to alocate al manufacturing conversion costs (direct labor and manutactunng overmead). activities and related data folow Its (Click the icon to view the activity areas and related data.) Require 1. Compute the per-unit nutacturing product of Standard desks and Unpainted desks. cost 2. Premanufacturing activies, such as product design. were assigned to the Standard desks at $4 each and to the Unpainted desks at 52 each. Similar analyses were conducted of post-manufacturing acivities, such as distribution. marketing, and customer service. The post-manufacturing costs were S22 per Standard and $21 per Unpainted desk. Compute the ful roduct costs per desk. Which product costs reported in the externalfnancial statements? Which costs sed for management decisi making? Explain the differen What p should McKnight's set for Standard deaks to $40 profit per desk
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