Chapter 17, Problem 4E

a.

To determine

Compute the total amount of overhead cost applied to the 17,500 key boards.

b.

To determine

Compute the per - unit cost of manufacturing these keyboards.

c.

To determine

Explain the reason behind using two separate activity base by department while applying overhead cost to one type of product.

d.

To determine

Identify at least two type of overhead cost pools that might be driven by each of the two cost drivers indicated in the given situation.

e.

To determine

Identify the primary driver of overhead cost in the manufacture of keyboards.

f.

To determine

Compute the gross profit that will result from the sale of $6,000 keyboards at a sales price of $30 each.