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(Click the icon to view allocation information.) i. (Click the icon for additional information.) a desktop now uses 225 parts, what is the new kitting
(Click the icon to view allocation information.) i. (Click the icon for additional information.) a desktop now uses 225 parts, what is the new kitting cost assigned to one desktop? (Round all calculations to the nearest cent.) A. $8.00 B. $10.00 C. $9.00 D. $11.25 More info More info Monitor allocates the following: - Kitting costs based on the number of parts used in the computer - Boxing costs based on the cubic feet of space the computer requires Suppose Monitor estimates it will use 275,000,000 parts per month and ship products with a total volume of 50,000,000 cubic feet per month. Assume that each desktop computer requires 200 parts and has a volume of 8 cubic feet. The predetermined overhead allocation rate for kitting is $0.04 per part and the predetermined overhead allocation rate for boxing is $0.50 per cubic foot. The kitting and boxing costs assigned to one computer are $8.00 and $4.00, respectively. Monitor contracts with its suppliers to pre-kit certain component parts before delivering them to Monitor. Assume this saves $500,000 of the kitting cost and reduces the total number of parts by 65,000,000 (because Monitor considers each pre-kit as one part)
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