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Pell uses activity - based costing. Two of Pell's production activities are kitting ( assembling the raw materials needed for each computer in one kit
Pell uses activitybased costing. Two of Pell's production activities are kitting assembling the raw materials needed for each computer in one kit and boxing the completed products for shipment to customers. Assume that Pell spends $ per month on kitting and $ per month on boxing. Pell 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 Pell 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
What are the kitting and boxing costs assigned to one desktop computer? Round all calculations to the nearest cent.
A
tableKitting,Boxing$$
B
tableKitting,Boxing$$
c
tableKitting,Boxing$$
D
tableKitting,Boxing$$
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