Question

Liao 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 measures for the two kinds of keyboards follow.


Required
a. Compute the cost per unit of laptop and desktop keyboards, assuming that Liao made 300 units of each type of keyboard. Round your computation to two decimal points.
b. Explain why laptop keyboards cost more to make even though they have less material cost and are smaller than desktopkeyboards.


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  • CreatedFebruary 07, 2014
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