Question: Activity Allocation Base Allocation Rate Materials receiving & handling Cost of material 2% of material cost Production setup Number of setups $ 50.00 per setup
| Activity | Allocation Base | Allocation Rate |
|---|---|---|
| Materials receiving & handling | Cost of material | 2% of material cost |
| Production setup | Number of setups | $ 50.00 per setup |
| Assembly | Number of parts | $ 2.50 per part |
| Quality inspection | Inspection time | $ 0.75 per minute |
| Packing and shipping | Number of orders | $ 10.00 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 | $ 630 | $ 3,000 | 30 | 42 | 3,600 minutes | 65 |
| Desktops | 575 | 2,400 | 12 | 24 | 2,500 minutes | 20 |
Required
a. Compute the cost per unit of laptop and desktop keyboards, assuming that Wu made 500 units of each type of keyboard.
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