Finch Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The production pre is automated, and the company has found activity-based costing useful in assigning overhead costs to its products. The company 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 beaktope Allocation Bas Cost of material Number of setups Number of parta Inspection time Number of orders Labor Cost $1,320 1,210 Material Number of Number of Coat $5,800 7,300 Betupa 33 14 Allocation Rate 1 of material cont $102.00 per setup $ 3.00 per part $ 1.90 per minute $ 11.00 per order Parts Inspection Time 44 27 7,400 minutes 4,600 minutes Number of Orders 69 17 Required a. Compute the cost per unit of laptop and desktop keyboards, assuming that Finch made 200 units of each type of keyboard. Note: Round your answers to 2 decimal places.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 5-10A (Algo) Computing product cost with given activity allocation rates LO 5-3
Finch 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
Labor Cost
$1,320
1,210
Allocation Base
Cost of material
Number of setups
Number of parts
Inspection time
Number of orders
Laptop keyboards
Desktop keyboards
Material Number of Number of
Cont
$5,800
7,300
Cost Per Unit
Setupa
33
Parts
44
27
Allocation Rate
18 of material cont
$102.00 per setup
$ 3.00 per part
$ 1.90 per minute
$ 11.00 per order
Inspection Time
7,400 minutes
4,600 minutes
Number of
Ordere
Required
a. Compute the cost per unit of laptop and desktop keyboards, assuming that Finch made 200 units of each type of keyboard.
Note: Round your answers to 2 decimal places.
69
17
Transcribed Image Text:Exercise 5-10A (Algo) Computing product cost with given activity allocation rates LO 5-3 Finch 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 Labor Cost $1,320 1,210 Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Laptop keyboards Desktop keyboards Material Number of Number of Cont $5,800 7,300 Cost Per Unit Setupa 33 Parts 44 27 Allocation Rate 18 of material cont $102.00 per setup $ 3.00 per part $ 1.90 per minute $ 11.00 per order Inspection Time 7,400 minutes 4,600 minutes Number of Ordere Required a. Compute the cost per unit of laptop and desktop keyboards, assuming that Finch made 200 units of each type of keyboard. Note: Round your answers to 2 decimal places. 69 17
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