Wu 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 measures for the two kinds of keyboards follow:

Required
a. Compute the cost per unit of laptop and desktop keyboards, assuming that Wu made 500 units of each type of keyboard. Round your computation to two decimal points. 

b. Explain why laptop keyboards cost more to make even though they have less material cost and are smaller than desktop keyboards.

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Activity Materials receiving&handling Production setup Assembly Quality inspection Packing and shipping Allocation Base Cost of material Number of setups$50.00 per setup Number of parts Inspection time Number of orders $10.00 per order Allocation Rate 2% of material cost $2.50 per part $0.75 per minute Labor Cost Material Cost Number Number Inspection Number of Setups of Parts Time of Orders Laptops Desktops $630 575 $3,000 2,400 30 12 42 24 3,600 min. 2,500 min. 65 20