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Category > Business & Finance Posted 18 Aug 2017 My Price 10.00

Chapter 17-B Post-Test Budgeted Cost Activity Materials handling Assembly Finishing Cost of Activity Allocation Base Allocation Rate $250,000 Number...

Prescott, Inc., manufactures bookcases and uses an activity-based costing system. Prescott's activity areas and related data follow: LOADING...(Click the icon to view the activity areas and related data.) Requirements

1. Compute the manufacturing product cost per unit of each type of bookcase.
2. Suppose that premanufacturingactivities, such as productdesign, were assigned to the standard bookcases at $6 each and to the unfinished bookcases at $3 each. Similar analyses were conducted of post manufacturing activities such asdistribution, marketing, and customer service. The post manufacturing costs were $ 22 per standard bookcase and $13 per unfinished bookcase. Compute the full product costs per unit.
3. Which product costs are reported in the external financialstatements? Which costs are used for management decisionmaking? Explain the difference.
4. What price should Prescott's managers set for unfinished bookcases to earn a unit profit of $14?


Requirement 1. Compute the manufacturing product cost per unit of each type of bookcase: Standard and Unfinished. (Complete all input boxes. Round answers to the nearest whole dollar.)

 

  Standard Bookcase Unfinished Bookcase
     
     
     
     
Total manufacturing cost    
     
Manufacturing cost per unit  

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Martinakom
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Status NEW Posted 18 Aug 2017 12:08 PM My Price 10.00

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