Benson Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The production
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Question:
Benson 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 | 3 % of material cost | |||
Production setup | Number of setups | $ | 102.00 | per setup | |
Assembly | Number of parts | $ | 7.00 | per part | |
Quality inspection | Inspection time | $ | 1.90 | 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 | $ | 1,340 | $ | 6,100 | 32 | 43 | 6,700 | min. | 67 | |||||||||
Desktops | 1,230 | 7,300 | 12 | 25 | 4,800 | min. | 24 | |||||||||||
Required
Compute the cost per unit of laptop and desktop keyboards, assuming that Benson made 370 units of each type of keyboard. (Round your answers to 2 decimal places.)
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old
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