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P24-25A Lawton, Inc., manufactures bookcases and uses d data follow. Cost Allocation Rate $ 0.80 15.00 Budgeted Cost of Activity Activity Allocation Base Materials handling Assembling Finishing 200,000 Number of parts 3,000,000 Direct labor hours 160,000 Number of finished units 3.90 Lawton produced two styles of bookcases in April: 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. Total Total Direct Total Assembling Units Materials Number Direct Labor Product Standard bookcase 3,000 $29,300 80,000 Unfinished bookcase 3,600 Produced Costs of Parts Hours 3,000 2,000 28,800 84,000 Requirements 1. Compute the manufacturing product cost per unit of each type of bookcase. (pp. 1209, 1210) 2. Suppose that premanufacturing activities, such as product design, were assigned to the standard bookcases at $4 each and to the unfin- ished bookcases at $3 each. Similar analyses were conducted of post manufacturing activities such as distribution, marketing, and cus tomer service. The postmanufacturing costs were $20 per standard bookcase and $15 per unfinished bookcase. Compute the full prod- uct costs per unit. (p. 1213) Which p ments? Which costs are used for management decision making? Explain the difference. roduct costs are reported in the external financial state- ce should Lawton's managers set for unfinished bookcases Activity-Based Costing and Other Cost Management Tools 1239 4. What pri to earn a unit profit of $16? (p. 12 P24-25A Lawton, Inc., manufactures bookcases and uses d data follow. Cost Allocation Rate $ 0.80 15.00 Budgeted Cost of Activity Activity Allocation Base Materials handling Assembling Finishing 200,000 Number of parts 3,000,000 Direct labor hours 160,000 Number of finished units 3.90 Lawton produced two styles of bookcases in April: 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. Total Total Direct Total Assembling Units Materials Number Direct Labor Product Standard bookcase 3,000 $29,300 80,000 Unfinished bookcase 3,600 Produced Costs of Parts Hours 3,000 2,000 28,800 84,000 Requirements 1. Compute the manufacturing product cost per unit of each type of bookcase. (pp. 1209, 1210) 2. Suppose that premanufacturing activities, such as product design, were assigned to the standard bookcases at $4 each and to the unfin- ished bookcases at $3 each. Similar analyses were conducted of post manufacturing activities such as distribution, marketing, and cus tomer service. The postmanufacturing costs were $20 per standard bookcase and $15 per unfinished bookcase. Compute the full prod- uct costs per unit. (p. 1213) Which p ments? Which costs are used for management decision making? Explain the difference. roduct costs are reported in the external financial state- ce should Lawton's managers set for unfinished bookcases Activity-Based Costing and Other Cost Management Tools 1239 4. What pri to earn a unit profit of $16? (p. 12

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