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Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer...

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Accounting

Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer parts is 1,000 units, while 1,200 keyboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Computer parts require 3 direct labor hours per unit, while keyboards require 2.5 direct labor hours per unit. The total estimated overhead for the period is $114,000. The company is looking at the possibility of changing to an activity- based costing system for its products. What is the predetermined overhead allocation rate using the traditional costing system

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