x Data Table A Budgeted Cost Cost Activity of Activity Allocation Base Allocation Rate Materials.hand 330,000 Number of parts 0.80 Assembling. ........ 2,700,000 Direct labor hours 14.00 Painting............ 160,000 Number of painted desks $ 5.00 McKnight produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: A A Total Units Product Produced Standard. desk ........ 6,500 Unpainted. desk ....... 2,000 Total Direct Materials Costs $ 108,500 $ 18,800 Total Number of Parts 121,500 31,500 Total Assembling Direct Labor Hours 6,200 1,000 Print Done McKnight Corp, manufactures computer desks in its Pheonix, Arizona, 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.) Requirements 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $7 each and to the Unpainted desks at $5 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post manufacturing costs were 521 per Standard and $20 per Unpainted desk. Compule the full product costs per desk. 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 McKnight's managers set for Standard desks to eam a S40 profit per desk? Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input boxes. Enter a "D" 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 Nurnber of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at S7 each and to the Unpainted desks at $5 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $21 por Standard and S20 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. Vare reported in the financial statements. Managers use V 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 $40 profit per desk? Sales price per unit - standard desk x Data Table A Budgeted Cost Cost Activity of Activity Allocation Base Allocation Rate Materials.hand 330,000 Number of parts 0.80 Assembling. ........ 2,700,000 Direct labor hours 14.00 Painting............ 160,000 Number of painted desks $ 5.00 McKnight produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: A A Total Units Product Produced Standard. desk ........ 6,500 Unpainted. desk ....... 2,000 Total Direct Materials Costs $ 108,500 $ 18,800 Total Number of Parts 121,500 31,500 Total Assembling Direct Labor Hours 6,200 1,000 Print Done McKnight Corp, manufactures computer desks in its Pheonix, Arizona, 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.) Requirements 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at $7 each and to the Unpainted desks at $5 each. Similar analyses were conducted of post-manufacturing activities, such as distribution, marketing, and customer service. The post manufacturing costs were 521 per Standard and $20 per Unpainted desk. Compule the full product costs per desk. 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 McKnight's managers set for Standard desks to eam a S40 profit per desk? Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input boxes. Enter a "D" 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 Nurnber of units Manufacturing cost per unit Requirement 2. Premanufacturing activities, such as product design, were assigned to the Standard desks at S7 each and to the Unpainted desks at $5 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $21 por Standard and S20 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. Vare reported in the financial statements. Managers use V 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 $40 profit per desk? Sales price per unit - standard desk