Compute the full product cost per desk

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Reference no: EM132692640

Johnson Corp manufacturers computers desk in it's Buffalo New York plant. The company uses activity based on costing to allocate all manufacturing conversion cost direct labor and manufacturing overhead it's activities and related data follow.

Question 1) Compute the per unit manufacturing product cost of standard desks and unpainted desks.

Question 2) pre manufacturing activities such as product design, were assigned to the standard desk at $4 each and to the unpainted desk at $3 each. Similar analysis were conducted of post manufacturing activities, such as distribution, marketing, and customer service. The post manufacturing cost were $22 per standard and $21 per unpainted desk. Compute the full product cost per desk.

Question 3) Which product cost are reported in the external financial statements which costs are used to management decision making explain the difference.

Question 4) What price should Johnson's managers set for Standard desks to earn a $42 profit per desk?

Reference no: EM132692640

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