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Assignment: Multimedia Keyboards Comfort Type Keyboards

Gigabytes Computers manufactures two types of keyboards and uses activity-based costing to allocate overhead costs across five activity centers: material handling, machine set-up, assembly, inspection, and packaging/shipping. The document provides allocation rates for each activity center and production information for the two keyboard types to calculate the total and per unit overhead costs assigned to each.

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jeams vidal
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287 views

Assignment: Multimedia Keyboards Comfort Type Keyboards

Gigabytes Computers manufactures two types of keyboards and uses activity-based costing to allocate overhead costs across five activity centers: material handling, machine set-up, assembly, inspection, and packaging/shipping. The document provides allocation rates for each activity center and production information for the two keyboard types to calculate the total and per unit overhead costs assigned to each.

Uploaded by

jeams vidal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

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 setups P320 per setup
Assembly No. of keyboards P 24 per keyboard
Inspection No. of keyboards P 10 per keyboard
Packaging and shipping No. of orders P 20 per oder

Multimedia keyboards Comfort type keyboards


No. of keyboards 400 700
No. of setups 45 25
No. of orders 9 16
Materials cost P 12,000 P 15,400

Required:
1. Compute the total overhead costs assigned to each type of keyboard.
2. Compute the overhead costs per keyboard assigned to each type of keyboard.

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