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Gigabytes Computers, Inc, manufactures two styles of computer keyboards, the multimedia Keyboard and the Comfort Type keyboard. The company uses activity based costing to


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Gigabytes Computers, Inc, manufactures two styles of computer keyboards, the multimedia Keyboard and the Comfort Type keyboard. The company uses activity based costing to allocat overhead costs to its products. The following activity centers have been identified: Activity Center Cost Driver Allocation rate Material Handling Cost of Materials 5% of materials cost Machine Set up Assembly No. of set ups No. of keyboards Inspection Packaging and shipping No. of keyboards No. of Orders P320 per setup P24 per keyboard P 10 per keyboard P20 per order Multimedia Keyboards Comfort Type Keyboards No. of keyboards 400 700 No. of set ups 45 25 No. of Orders 9 16 Material Cost P12,000 P15,400 Required: 1. Compute the total overhead costs assigned to each type of keyboard. 2. Compute the overhead cost per keyboard for each type of keyboard.

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