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Johnston Corp. manufactures computer desks in its Syracuse, 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 requirements Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" 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 $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $20 per Standard and $19 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 However, these costs often are ▼ Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting.

Johnston Corp. manufactures computer desks in its Syracuse, 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 requirements Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" 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 $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities such as distribution, marketing, and customer service. The post-manufacturing costs were $20 per Standard and $19 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 However, these costs often are ▼ Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? for decisions such as pricing and product emphasis. Full product costs include the that are expensed as incurred for external reporting.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 30P: San Mateo Optics, Inc., specializes in manufacturing lenses for large telescopes and cameras used in...
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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
$5
each and to the Unpainted desks at
$3
each. Similar analyses were conducted of​ post-manufacturing activities, such as​ distribution, marketing, and customer service. The​ post-manufacturing costs were
$20
per Standard and
$19
per Unpainted desk. Compute 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
Johnston's
managers set for Standard desks to earn a
$39
profit per​ desk?
Johnston Corp. manufactures computer desks in its Syracuse, 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 requirements. Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" 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 $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities such distribution, marketing, and customer service. The post-manufacturing costs were $20 per Standard and $19 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 V Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? However, these costs often are for decisions such as pricing and product emphasis. Full product costs include the ▼that are expensed as incurred for external reporting.
Transcribed Image Text:Johnston Corp. manufactures computer desks in its Syracuse, 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 requirements. Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" 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 $5 each and to the Unpainted desks at $3 each. Similar analyses were conducted of post-manufacturing activities such distribution, marketing, and customer service. The post-manufacturing costs were $20 per Standard and $19 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 V Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? However, these costs often are for decisions such as pricing and product emphasis. Full product costs include the ▼that are expensed as incurred for external reporting.
Johnston Corp. manufactures computer desks in its Syracuse, 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. EEE (Click the icon to view the activity areas and related data.) Read the requirements. 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 $5 each and to the Un per Standard and $19 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 decisi are reported in the financial statements. Managers use However, these costs often are V. Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? Sales price per unit - standard desk for decisions s (H) Data table Budgeted Cost of Activity Activity Materials handling ... $ Assembling Painting. $ $ Product Standard desk ... Unpainted desk Allocation Base 300,000 Number of parts $ 2,500,000 Direct labor hours $ 190,000 Number of painted desks $ 0.60 14.00 4.90 Johnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Total Direct Produced Materials Costs 6,000 $ 2,500 $ $ Print 114,000 39,900 Cost Allocation Rate Total Number of Parts 121,000 31,000 Done Total Assembling Direct Labor Hours 6,000 1,000 ng, and customer service. The post-manufacturing costs were $20 that are expensed as incurred for external reporting.
Transcribed Image Text:Johnston Corp. manufactures computer desks in its Syracuse, 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. EEE (Click the icon to view the activity areas and related data.) Read the requirements. 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 $5 each and to the Un per Standard and $19 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 decisi are reported in the financial statements. Managers use However, these costs often are V. Requirement 4. What price should Johnston's managers set for Standard desks to earn a $39 profit per desk? Sales price per unit - standard desk for decisions s (H) Data table Budgeted Cost of Activity Activity Materials handling ... $ Assembling Painting. $ $ Product Standard desk ... Unpainted desk Allocation Base 300,000 Number of parts $ 2,500,000 Direct labor hours $ 190,000 Number of painted desks $ 0.60 14.00 4.90 Johnston produced two styles of desks in March: the Standard desk and Unpainted desk. Data for each follow: Total Units Total Direct Produced Materials Costs 6,000 $ 2,500 $ $ Print 114,000 39,900 Cost Allocation Rate Total Number of Parts 121,000 31,000 Done Total Assembling Direct Labor Hours 6,000 1,000 ng, and customer service. The post-manufacturing costs were $20 that are expensed as incurred for external reporting.
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