Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pell uses activity based costing Two of Pol's production activities are king (assembling the raw materials needed for each computer in one kit) and boxing

image text in transcribed
image text in transcribed
image text in transcribed
Pell uses activity based costing Two of Pol's production activities are king (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Pollspends $4,500,000 per month on Witting and $14,000,000 per month on boxing, Poll allocates the following Killing costs based on the number of parts used in the computer Doxing costs based on the cubic foot of space the computer requires Suppose Palestimates will use 90,000,000 parts per month and she products with a total volume of 28,000,000 cubic foet per month. Assume that each desktop computer requires 100 parts and has a volume of cubie fout. The predetermined overhead allocation rate for kitting is $0.05 per part and the predetermined overhead allocation rate for booking is $0.50 per cubio foot OA. Kitting Boxing $ 4.50 $ 5.00 . Kitting Boxing $ 5.00 $ 4.50 C. Kitting Boxing $ 0.45 $ 50.00 OD. Kitting Boxing $ 5.45 $ 54.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

More Books

Students also viewed these Finance questions

Question

1. As you can see, all the client requirements have been met.

Answered: 1 week ago