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please ignore my work and highlight. the answer key for my study guide says the answer is $3.20, but I am very sure it is
please ignore my work and highlight. the answer key for my study guide says the answer is $3.20, but I am very sure it is 2.40. If it is $3.20, please explain how we arrived to this asnwer
Review Packet-Sun Medicus activity-based costing. Two of Pell's production activities are writt enhline the raw materials needed for each computer mon plated products for shipment to customers. Assume that Pell spends 512 000 000 per month on kitting and $15.000.000 por raw materials needed for each computer in onun kit) and boxing the Click the icon to view allocation information.) 100 per month on Kitting and $15.000.000 per month on boxing. 12(Click the icon for additional Information.) If a desktop now uses 80 parts, what is the new kitting cast assigned to one deskton? (Round all calculations to the nearest cel Review Only Click the icon to see the Worked Solution. O A 0.03 X 8042.90?? $3.20 B. $6.75 O c. $9.00 OD. $2.40 ?? Kiting a Buting estimuted Overhead 8.000.000 IS.000.000 parts requined I pre-detemined gurur 0.03 10.64 costs assigned | 6.75 7.04 parts per month 200.000,00 11: More Info 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 12: More Info Suppose Pell estimates it will use 400,000,000 parts per month and ship products with a total volume of 23,437,500 cubic feet per month. Assume that each desktop computer requires 225 parts and has a volume of 11 cubic feet. The predetermined overhead allocation rate for kitting is $0.03 per part and the predetermined overhead allocation rate for boxing is $0.64 per cubic foot. The kitting and boxing costs assigned to one computer are $6.75 and $7.04, respectively. Pell contracts with its suppliers to pre-kit certain component parts before delivering them to Pell. Assume this saves $4,000,000 of the kitting cost and reduces the total number of parts by 200,000,000 (because Pell considers each pre-kit as one part). empute it can use ABC information for what decisionsStep by Step Solution
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