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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 $ per month on kitting and $ per month on boxing
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If a desktop now uses 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 parts per month and ship products with a total volume of cubic feet per month. Assume that each desktop computer requires parts and has a volume of cubic feet. The predetermined overhead allocation rate for kitting is $ per part and the predetermined overhead allocation rate for boxing is $ per cubic foot. The kitting and boxing costs assigned to one computer are $ and $ respectively. Mouse contracts with its suppliers to prekit certain component parts before delivering them to Mouse. Assume this saves $ of the kitting cost and reduces the total number of parts by because Mouse considers each pre kit as one part
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