Question
In: Accounting
Rundle Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The...
Rundle Manufacturing produces two keyboards, one for laptop
computers and the other for desktop computers. The production
process is automated, and the company has found activity-based
costing useful in assigning overhead costs to its products. The
company has identified five major activities involved in producing
the keyboards.
| Activity | Allocation Base | Allocation Rate | |||
| Materials receiving & handling | Cost of material | 2 % of material cost | |||
| Production setup | Number of setups | $ | 108.00 | per setup | |
| Assembly | Number of parts | $ | 6.00 | per part | |
| Quality inspection | Inspection time | $ | 2.00 | per minute | |
| Packing and shipping | Number of orders | $ | 11.00 | per order | |
Activity measures for the two kinds of keyboards follow:
| Labor Cost | Material Cost | Number of Setups | Number of Parts | Inspection Time | Number of Orders | |||||||||||||
| Laptops | $ | 1,230 | $ | 6,400 | 32 | 48 | 7,100 | min. | 62 | |||||||||
| Desktops | 1,120 | 7,200 | 15 | 23 | 4,600 | min. | 16 | |||||||||||
Required
-
Compute the cost per unit of laptop and desktop keyboards, assuming that Rundle made 300 units of each type of keyboard. (Round your answers to 2 decimal places.
Cost Per Unit
.Laptop keyboards { }
.Desktop Keyboards { }
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Rundle Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The...
Rundle Manufacturing produces two keyboards, one for laptop
computers and the other for desktop computers. The production
process is automated, and the company has found activity-based
costing useful in assigning overhead costs to its products. The
company has identified five major activities involved in producing
the keyboards.
Activity
Allocation Base
Allocation Rate
Materials receiving & handling
Cost of material
2 % of material cost
Production setup
Number of setups
$
108.00
per setup
Assembly
Number of parts
$
6.00
per...
Franklin Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The...
Franklin Manufacturing produces two keyboards, one for laptop
computers and the other for desktop computers. The production
process is automated, and the company has found activity-based
costing useful in assigning overhead costs to its products. The
company has identified five major activities involved in producing
the keyboards.
Activity
Allocation
Base
Allocation Rate
Materials receiving &
handling
Cost of material
1 % of
material cost
Production
setup
Number of
setups
$
113.00
per setup
Assembly
Number of parts
$
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