Homework: Chapter 19 Homework Assignment Save Score: 0 of 1 pt 1 of 1 (0 complete) HW Score: 0%, 0 of 1 pt P19-35A (similar to) Question Help McKnight, Inc. manufactures bookcases and uses an activity-based costing system. Mcknight's activity areas and related data follow (Click the icon to view the activity areas and related data) Mcknight 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 "0" for any zero-balances.) Standard Bookcase Unfinished Bookcase Total manufacturing cost Manufacturing cost per unit * Data Table Predetermined Budgeted Cost of Overhead Activity Activity Allocation Base Allocation Rate Materials handling 230,000 Number of parts 1.00 Assembly 3,500,000 Number of assembling direct labor hours 15.00 Finishing 190,000 Number of finished units 2.00 "Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done Data Table Product Standard bookcase Unfinished bookcase Total Units Produced 7,000 7.800 Total Direct Total Direct Total Number Materials Costs Labor Costs of Parts $ 126,000 $ 105,000 21,000 124,800 81,900 15,600 Total Assembling Direct Labor Hours 7.000 5,460 Print Done 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 $5 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 $23 per standard bookcase and $16 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 Mcknight's managers set for unfinished bookcases to earn a net profit of $17 per bookcase? Print Done