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Requirements 1. Compute the manufacturing product cost per unit of each type of bookcase. 2. Suppose that pre-manufacturing activities, such as product design, were assigned to the standard bookcases at $6 each and to the unfinished bookcases at $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $20 per standard bookcase and $14 per unfinished bookcase. Compute the full product costs per unit. 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 Prescott's managers set for unfinished bookcases to earn a net profit of $15 per bookcase? Print Done Data Table Predetermined Budgeted Cost Overhead Activity of Activity Allocation Base Allocation Rate Materials handling $ 220,000 Number of parts 0.50 Assembly 3,500,000 Number of assembling direct labor hours 15.00 Finishing 170,000 Number of finished units* 4.50 "Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done a Data Table Total Assembling Direct Labor Hours Product Total Direct Total Direct Materials Labor Costs Costs $ 112,000 $ 140,000 112,500 90,000 Total Units Produced 7,000 7,500 Total Number of Parts 21,000 15,000 Standard bookcase Unfinished bookcase 14,000 9,000 Print Done Homework: Chapter 19 Homework 3 of 5 (2 complete) Score: 0 of 1 pt P19-35A (similar to) Prescott, Inc. manufactures bookcases and uses an activity-based costing system. Prescott's activity areas and related data follow: (Click the icon to view the activity areas and related data.) Prescott produced two styles of bookcases in October: 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 foll Click the icon to view the totals for quantities, direct materials costs, and other data.) Read the requirements. Requirement 1. Compute the manufacturing product cost per unit of each type of bookcase. (Enter a "0" for any zero-balances.) Standard Bookcase Unfinished Bookcase Direct materials Direct labor Materials handling Assembling Finishing Total manufacturing cost Number of units Manufacturing cost per unit