Rooney 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 Activity measures for the two kinds of keyboards follow: Laptops Desktops Required Labor Cost $ 1,190 1,080 Laptop keyboards Desktop keyboards Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Material Number of Number of Cost $6,000 7,000 Cost Per Unit Setups 26 13 Parts 46 25 Allocation Rate 1% of material cost $ 109.00 per setup $ 5.00 per part $ 1.30 per minute $ 10.00 per order Inspection Time 7,200 minutes 5,100 minutes a. Compute the cost per unit of laptop and desktop keyboards, assuming that Rooney made 310 units of each type of keyboard. Note: Round your answers to 2 decimal places. Number of Orders 61 24

Rooney 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 Activity measures for the two kinds of keyboards follow: Laptops Desktops Required Labor Cost $ 1,190 1,080 Laptop keyboards Desktop keyboards Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Material Number of Number of Cost $6,000 7,000 Cost Per Unit Setups 26 13 Parts 46 25 Allocation Rate 1% of material cost $ 109.00 per setup $ 5.00 per part $ 1.30 per minute $ 10.00 per order Inspection Time 7,200 minutes 5,100 minutes a. Compute the cost per unit of laptop and desktop keyboards, assuming that Rooney made 310 units of each type of keyboard. Note: Round your answers to 2 decimal places. Number of Orders 61 24

Name: Rooney Manufacturing produces two keyboards, one for laptop computers
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Description: Rooney Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The productionprocess is automated, and the company has found activity-based costing useful in assigning overhead costs to its products. Theco

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 26P

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