problem solving:

Gigabytes Computers, Inc, manufactures two styles of computer keyboards, the multimedia Keyboard and the Comfort Type keyboard. The company uses activity based costing to allocate 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 No. of set ups P320 per setup Assembly No. of keyboards P24 per keyboard Inspection No. of keyboards P 10 per keyboard Packaging and shipping No. of Orders P 20 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