Owen Corp. manufactures computer desks in its Rochester, New York, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead) Its activities and related data follow E: (Click the icon to view the activity areas and related data.) Read the requirements Data Table X Activity Materials handling Budgeted Cost of Activity Allocation Base S 270.000 Number of parts Cost Allocation Rate S 0.60 Assembling S 2.700.000 Direct labor hours S 14.00 Painting S 190.000 Number of painted desks 5.00 Owen produced two styles of desks in March the Standard desk and Unpainted desk Data for each follow tal Units Total Direct Produced Materials Costs Product Total Number of Parts Total Assembling Direct Labor Hours Standard desk 7.500 195.700 119.000 6100 Unpainted desk .... 1.500 $ 28,300 29.000 TOO GE yse Ek Print Done elle! 1 Requirements I of unt pain MIT 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 S6 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 $24 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 Owen's managers set for Standard desks to eam a $42 profit per desk? Print Done lar ar Esign factul per hodontinue to the next question es 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 dolla Standard Desk 195,700 71.400 Unpainted Desk 28 300 Direct materials 17|400 Materials handling Assembling 85 400 9800 37 500 Painting Total manufacturing cost 390 000 55.500 7.500 1,500 Number of units 52 Manufacturing cost per unit Requirement 2. Premanufacturing activities such as product design, were assigned to the Standard desks at S6 each and to the Unpainted desks at $3 each Similar analyses were conducted of post-manufacturing activitie Manufacturing cost per unit Requirement 2. Premanufacturing activities such as product design, were assigned to the Standard desks at $6 each and to the Unpainted desks at 53 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 $21 per Unpainted desk Compute the full product costs per desk Standard Desk Unpainted Desk Manufacturing product costs 52 37 Post-manufacturing activities Premanufacturing activities 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 V 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 Owen's managers set for Standard desks to earn a $42 profit per desk? Sales price per unit - standard desk Choose from any list or enter any number in the input fields and then continue to the next