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Budgeted Cost Cost Allocation Activity of Activity Allocation Base Rate Materials handing ... 200,000 Number of parts $ 0.60 Assembling 5 2.400.000 Dractabor hours 15.00 Painting 140.000 Number of painted 5.10 McKnight produced to styles of deska in Marche Standard desk and Unpainted desk Duta for each follow Total Units Total Direct Total Number Total Assembling Product Produced Materials Costs of Parts Direct Labor Hours Standard desk 6,000 $ 140, 100 120.500 5.800 Unpainted desk 2.000 $ 37,700 30.500 1.200 1. Compute the per una manufacturing product cost of Standard desks and Unpainted 2. Prolacturing activities, such as product design were signed to the Standard des 7 each and to the United each analyses were conducted of postmaturing distribution, tinand customer service. The post manufacturing costs were 521 por Sanded and $20 per Unpainted Compute the prout costs per 3. Which products are reported in the externa francaments Which couts are used for management decision making Explain the difference 4. What price should McKnight managers set for Standard desks to cara $41 profit per desk? Print Done Mcknight Corp. manufactures computer desks in its Buffalo, 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 icon to view the activity areas and related data.) Read the wsuirements Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all 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 Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $7 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 $21 per Standard and $20 per Unpainted desk. Compute the full product costs per desk. Standard Desk Unpainted Desk 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. are reported in the financial statements. Managers use for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting. However, these costs often are Requirement 4. What price should McKnight's managers set for Standard desks to earn a $41 profit per desk? Requirement 4. What price should Mcknight's managers set for Standard desks to earn a $41 profit per desk? Sales price per unit - standard desk