Zachary Manufacturing produces two keyboards, one for laptop computers and the o
ID: 2541980 • Letter: Z
Question
Zachary 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 measures for the two kinds of keyboards follow:
Required
Compute the cost per unit of laptop and desktop keyboards, assuming that Zachary made 290 units of each type of keyboard. (Round your answers to 2 decimal places.)
Activity Allocation Base Allocation Rate Materials receiving & handling Cost of material 3 % of material cost Production setup Number of setups $ 104.00 per setup Assembly Number of parts $ 4.00 per part Quality inspection Inspection time $ 1.60 per minute Packing and shipping Number of orders $ 10.00 per orderExplanation / Answer
Compute the cost per unit of laptop and desktop keyboards, assuming that Zachary made 290 units of each type of keyboard.
Laptop Desktop Material cost 5800 7600 Labour cost 1310 1200 Materials receiving & handling 174 228 Production setup 3328 1456 Assembly 176 116 Quality inspection 11360 7680 Packing and shipping 690 190 Total cost 22838 18470 Unit 290 290 Cost per unit 78.75 63.69Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.