Jordan Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The...
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Jordan 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 Materials receiving & handling Production setup. Assembly Quality inspection Packing and shipping Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Activity measures for the two kinds of keyboards follow: Allocation Rate 2% of material cost $ 115.00 per setup $ 6.00 per part $ 1.10 per minute $ 11.00 per order Laptops Desktops Labor Cost $ 1,180 1,070 Material Cost $ 6,000 7,200 Setups 30 Number of Number of Parts 49 14 27 Inspection Time 7,000 minutes 5,400 minutes Number of Orders 65 20 Required a. Compute the cost per unit of laptop and desktop keyboards, assuming that Jordan made 290 units of each type of keyboard. Note: Round your answers to 2 decimal places. Laptop keyboards Desktop keyboards Cost Per Unit Jordan 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 Materials receiving & handling Production setup. Assembly Quality inspection Packing and shipping Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Activity measures for the two kinds of keyboards follow: Allocation Rate 2% of material cost $ 115.00 per setup $ 6.00 per part $ 1.10 per minute $ 11.00 per order Laptops Desktops Labor Cost $ 1,180 1,070 Material Cost $ 6,000 7,200 Setups 30 Number of Number of Parts 49 14 27 Inspection Time 7,000 minutes 5,400 minutes Number of Orders 65 20 Required a. Compute the cost per unit of laptop and desktop keyboards, assuming that Jordan made 290 units of each type of keyboard. Note: Round your answers to 2 decimal places. Laptop keyboards Desktop keyboards Cost Per Unit
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Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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