Prescott, Inc. manufactures bookcases and uses an activity-based costing system. Prescott's activity areas and related data...

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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. Direct materials Data table Standard Bookcase Unfinished Bookcase 84000 94000 Activity Materials handling $ Assembly Finishing C Data table Predetermined Budgeted Cost of Activity Allocation Base Overhead Allocation Rate Product Standard bookcase Total Units Produced 6,000 $ 200,000 Number of parts $ 1.00 Unfinished bookcase 7,000 Total Direct Total Direct Materials Costs Labor Costs 84,000 $ 180,000 84,000 126,000 Total Number of Parts Total Assembling Direct Labor Hours 24,000 12,000 21,000 8,400 3,300,000 Number of assembling direct labor hours 150,000 Number of finished units* 15.00 3.00 *Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done 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 which include for decisions such as pricing and product emphasis. Requirement 4. What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? To earn a net profit of $16 per bookcase, Prescott's managers should charge Print Done which include 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. Direct materials Data table Standard Bookcase Unfinished Bookcase 84000 94000 Activity Materials handling $ Assembly Finishing C Data table Predetermined Budgeted Cost of Activity Allocation Base Overhead Allocation Rate Product Standard bookcase Total Units Produced 6,000 $ 200,000 Number of parts $ 1.00 Unfinished bookcase 7,000 Total Direct Total Direct Materials Costs Labor Costs 84,000 $ 180,000 84,000 126,000 Total Number of Parts Total Assembling Direct Labor Hours 24,000 12,000 21,000 8,400 3,300,000 Number of assembling direct labor hours 150,000 Number of finished units* 15.00 3.00 *Refers to number of units receiving the finishing activity, not the number of units transferred to Finished Goods Inventory Print Done 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 which include for decisions such as pricing and product emphasis. Requirement 4. What price should Prescott's managers set for unfinished bookcases to earn a net profit of $16 per bookcase? To earn a net profit of $16 per bookcase, Prescott's managers should charge Print Done which include