Print 7. 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.) Standard Bookcase Unfinished Bookcase (1) (2) (3) (4) (5) Total manufacturing cost (6) Manufacturing cost per unit Requirement 2. Suppose that pre manufacturing activities such as product design, were assigned to the standard bookcases at S1 each and to the unfinished bookcases at 33 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 $15 per unfinished bookcase. Compute the full product costs per unit. Standard Bookcase Unfinished Bookcase (8) 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. which include (13) for decisions such as pricing and product emphasis (10) which include (11) are reported in the financial statements Managers use (12) Requirement 4. What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? To eam a net profit of $16 per bookcase, Prescott's managers should charge C Activate Windows Go to Settings to activate Windows 1: Data Table Requirement 4. What pnce should Prescott's managers set for unfinished bookcases to eam a net profit of $16 per bookcase Print To eam a net profit of $16 per bookcase, Prescott's managers should charge 1: Data Table 09 Predetermined Budgeted Cost of Overhead Activity Activity Allocation Base Allocation Rate Materials handling 250,000 Nurnber of pails s 2.00 Assembly 3.400.000 Number of assembling direct labor hours 15.00 Finishing 190 000 Number of finished units 400 "Refers to nurnber of unils receiving the finishing activily, not the number of units transferred to Finished Goods Inventory 2: Data Table Total Units Produced Product Total Direct Total Direct Materials Costs Labor Costs $ 80,000 $ 112,600 62,500 82,500 Total Number of Parts 20.000 16,500 Total Assembling Direct Labor Hours 7.500 5,500 Standard bookcase Unfinished bookcase 5,000 5,500 3: Requirements Compute the manufacturing product cost per unit of cach type of bookcase 2. Suppose that pre-manufacturing activities such as product design, were assigned to the standard bookcases at $4 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-manutacturing costs were $20 per standard bookcase and $15 per untinished 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 What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? (2) O (3) O (4) O (1) O Assembling O Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials O Finishing Materials handling Number of units Activate Windows Go to Settings to activate Windows, (5) O (6) O (7) O Finishing Materials handling Finishing Materials handling O Post-manufacturing activities Pre-manufacturing activities Assembling Assembling Direct materials Print 7. 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.) Standard Bookcase Unfinished Bookcase (1) (2) (3) (4) (5) Total manufacturing cost (6) Manufacturing cost per unit Requirement 2. Suppose that pre manufacturing activities such as product design, were assigned to the standard bookcases at S1 each and to the unfinished bookcases at 33 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 $15 per unfinished bookcase. Compute the full product costs per unit. Standard Bookcase Unfinished Bookcase (8) 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. which include (13) for decisions such as pricing and product emphasis (10) which include (11) are reported in the financial statements Managers use (12) Requirement 4. What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? To eam a net profit of $16 per bookcase, Prescott's managers should charge C Activate Windows Go to Settings to activate Windows 1: Data Table Requirement 4. What pnce should Prescott's managers set for unfinished bookcases to eam a net profit of $16 per bookcase Print To eam a net profit of $16 per bookcase, Prescott's managers should charge 1: Data Table 09 Predetermined Budgeted Cost of Overhead Activity Activity Allocation Base Allocation Rate Materials handling 250,000 Nurnber of pails s 2.00 Assembly 3.400.000 Number of assembling direct labor hours 15.00 Finishing 190 000 Number of finished units 400 "Refers to nurnber of unils receiving the finishing activily, not the number of units transferred to Finished Goods Inventory 2: Data Table Total Units Produced Product Total Direct Total Direct Materials Costs Labor Costs $ 80,000 $ 112,600 62,500 82,500 Total Number of Parts 20.000 16,500 Total Assembling Direct Labor Hours 7.500 5,500 Standard bookcase Unfinished bookcase 5,000 5,500 3: Requirements Compute the manufacturing product cost per unit of cach type of bookcase 2. Suppose that pre-manufacturing activities such as product design, were assigned to the standard bookcases at $4 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-manutacturing costs were $20 per standard bookcase and $15 per untinished 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 What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? (2) O (3) O (4) O (1) O Assembling O Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials Finishing Materials handling Number of units Assembling Direct labor Direct materials O Finishing Materials handling Number of units Activate Windows Go to Settings to activate Windows, (5) O (6) O (7) O Finishing Materials handling Finishing Materials handling O Post-manufacturing activities Pre-manufacturing activities Assembling Assembling Direct materials