P24-25A Lawton, Inc., manufactures bookcases and uses an activity-based costing system. Lawton's activity areas and related data follow Budgeted Cost Activity Materials handling ssembling inishing Allocation Rate 0.80 15.00 3.90 of A Allocation Base 200,000 Number of parts 3,000,000 Direct labor hours Number of finished units 160,000 Lawton produced two styles of bookcases in April: 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. Total Total Total Die Assembling Units Materials Number Direct Labor Hours Standard bookcase 3,000 $29,300 80,000 3,000 Unfinished bookcase 3,600 28,800 84,000 2,000 Product Produced Costs of Parts Requirements 1. Compute the manufacturing product cost per unit of each type of bookcase. (pp. 1209, 1210) 2. Suppose that premanufacturing activities, such as product design, were assigned to the standard bookcases at $4 each and to the unfin- ished bookcases at $3 each. Similar analyses were conducted of post- manufacturing activities such as distribution, marketing, and cus- tomer service. The postmanufacturing costs were $20 per standard bookcase and $15 per unfinished bookcase. Compute the full prod- uct costs per unit. (p. 1213) 3. Which product costs are reported in the external financial state- ments? Which costs are used for management decision making? Explain the difference. What price should Lawton's managers set for unfinished bookcases to earn a unit profit of $162 (p. 1210) 1239 Activity-Based Cosling and Other Cost Management Tools