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 follow (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 "U" for any zero-balances) Direct materials Materials handing Assembling Total manufacturing cost Manufacturing cost per unit Standard Bookcase Unfinished Bookcase Data table Activity Materials handling $ Assembly Finishing Budgeted Cost of Activity Allocation Base 200,000 Number of parts 3,000,000 Number of assembling direct labor hours 160,000 Number of finished units Predetermined Overhead Allocation Rate 1.00 16.00 4.00 *Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done X Data table Total Units Product Produced Total Direct Total Direct Total Number Materials Costs Labor Costs of Parts Standard bookcase 5,000 $ 60,000 $ 90,000 20,000 Unfinished bookcase 5,500 55,000 66,000 16,500 Print Done Total Assembling Direct Labor Hours 7,500 5,500 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 $5 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $22 per standard bookcase and $13 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 $14 per bookcase? X te