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customers. Assume that Mouse spends $ 6 , 0 0 0 , 0 0 0 per month on kitting and $ 2 0 , 0

customers. Assume that Mouse spends $6,000,000 per month on kitting and $20,000,000 per month on boxing
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If a desktop now uses 100 parts, what is the new kitting cost assigned to one desktop? (Round all calculations to the nearest cent.)
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Mouse 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
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Suppose Mouse estimates it will use 120,000,000 parts per month and ship products with a total volume of 25,000,000 cubic feet per month. Assume that each desktop computer requires 200 parts and has a volume of 12 cubic feet. The predetermined overhead allocation rate for kitting is $0.05 per part and the predetermined overhead allocation rate for boxing is $0.80 per cubic foot. The kitting and boxing costs assigned to one computer are $10.00 and $960, respectively. Mouse contracts with its suppliers to pre-kit certain component parts before delivering them to Mouse. Assume this saves $400,000 of the kitting cost and reduces the total number of parts by 40,000,000(because Mouse considers each pre kit as one part).
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