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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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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