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. Thecompany has identified five major activities involved in producing the keyboards.ActivityMaterials receiving & handlingProduction setupAssemblyQuality inspectionPacking and shippingActivity measures for the two kinds of keyboards follow:LaptopsDesktopsLabor Cost$ 1,2501,140Laptop keyboardsDesktop keyboardsMaterial Number of Number ofCost$ 6,1007,000Allocation BaseCost of materialNumber of setupsNumber of partsInspection timeNumber of ordersCost Per UnitSetups2810Allocation Rate1% of material cost$ 120.00 per setup$ 7.00 per part$ 1.20 per minute$ 8.00 per orderParts Inspection Time7,100 minutes4,900 minutes4629Requireda. Compute the cost per unit of laptop and desktop keyboards, assuming that Rooney made 260 units of each type of keyboard.Note: Round your answers to 2 decimal places.Number ofOrders6616

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

ABC costing means activity-based costing. It can be used by service, manufacturing, or retailing…

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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 Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Allocation Rate 1% of material cost s 120.00 per setup $ 7.00 per part $ 1.20 per minute $ 8.00 per order

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 Allocation Base Cost of material Number of setups Number of parts Inspection time Number of orders Allocation Rate 1% of material cost s 120.00 per setup $ 7.00 per part $ 1.20 per minute $ 8.00 per order

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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