Johnston Corp. manufactures computer desks in its Buffalo, 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.) Unpainted Desk Standard Desk Direct materials Materials handling Assembling CO Painting Total manufacturing cost. Number of units Manufacturing cost per unit Data table Budgeted Cost of Activity Product Standard desk ..... Unpainted desk .... Allocation Base $ 310,000 Number of parts 2,400,000 Direct labor hours $ 180,000 Number of painted desks $ Activity Materials handling ... $ Assembling ......$ Painting ..........$ 0.90 16.00 5.20 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 5,000 1,500 29,750 8,250 $ $ Print Cost Allocation Rate Total Number Total Assembling of Parts Direct Labor Hours 6,100 600 Done 118,500 28,500 - X

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...
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Johnston Corp. manufactures computer desks in its Buffalo, 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.)
Unpainted Desk
Direct materials
Materials handling
Assembling
Painting
Total manufacturing cost
Number of units
Manufacturing cost per unit
Standard Desk
Data table
Budgeted Cost
of Activity
Allocation Base
310,000 Number of parts
Activity
Materials handling
Assembling ...
Painting ......……….. $
$
$
$
$
2,400,000 Direct labor hours
180,000 Number of painted desks $
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
29,750
8,250
Product
Standard desk..... 5,000 $
Unpainted desk .... 1,500 $
Print
Cost Allocation
Rate
Done
118,500
28,500
0.90
16.00
Total Number Total Assembling
of Parts Direct Labor Hours
6,100
600
5.20
X
Transcribed Image Text:Johnston Corp. manufactures computer desks in its Buffalo, 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.) Unpainted Desk Direct materials Materials handling Assembling Painting Total manufacturing cost Number of units Manufacturing cost per unit Standard Desk Data table Budgeted Cost of Activity Allocation Base 310,000 Number of parts Activity Materials handling Assembling ... Painting ......……….. $ $ $ $ $ 2,400,000 Direct labor hours 180,000 Number of painted desks $ 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 29,750 8,250 Product Standard desk..... 5,000 $ Unpainted desk .... 1,500 $ Print Cost Allocation Rate Done 118,500 28,500 0.90 16.00 Total Number Total Assembling of Parts Direct Labor Hours 6,100 600 5.20 X
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