Problem 2 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 Material Handling Machine Set up Assembly Inspection Packaging and shipping Cost Driver Cost of Materials No. of set ups No. of keyboards No. of keyboards Allocation rate 5% of materials cost P320 per setup P24 per keyboard P 10 per keyboard P 20 per order No. of Orders Multimedia Keyboards Comfort Type Keyboards No. of keyboards No. of set ups 400 700 45 25 No. of Orders 9. 16 Material Cost P12,000 P15,400 equired: 1. Compute the total overhead costs assigned to each type of keyboard. 2. Compute the overhead cost per keyboard for each type of keyboard.

Problem 2 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 Material Handling Machine Set up Assembly Inspection Packaging and shipping Cost Driver Cost of Materials No. of set ups No. of keyboards No. of keyboards Allocation rate 5% of materials cost P320 per setup P24 per keyboard P 10 per keyboard P 20 per order No. of Orders Multimedia Keyboards Comfort Type Keyboards No. of keyboards No. of set ups 400 700 45 25 No. of Orders 9. 16 Material Cost P12,000 P15,400 equired: 1. Compute the total overhead costs assigned to each type of keyboard. 2. Compute the overhead cost per keyboard for each type of keyboard.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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