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Owen Corp. manufactures computer desks in its Syracuse, New York, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and

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Owen Corp. manufactures computer desks in its Syracuse, 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. Click the loon to view the activity areas and related data) Read the taguirements Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Completeo input fields. Enter a "o" 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 Data Table X .. Budgeted Cost of Cost Allocation Activity Activity Allocation Base Rate Materials handling $ 300,000 Number of parts $ 0.70 Assembling $ 2,700,000 Direct labor hours $ 13.00 Painting 150,000 Number of painted desks $ 4.80 Owen produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Total Direct Total Number Total Assembling Product Produced Materials Costs of Parts Direct Labor Hours 5,000 $ 33,600 119,000 5,700 Unpainted desk 1,500 $ 9,800 29,000 800 Standard desk...... ---- Print Done Clear All 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 $6 each and to the Unpainted desks at $4 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 Owen's managers set for Standard desks to earn a $40 profit per desk? Print Done ok Check

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