Monitor uses activity-based costing. Two of Monitor's production activites are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Monitor spends $4,000,000 per month on kitting and $13,000,000 per month on boxing. Monitor 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 Monitor estimates it will use 200,000,000 parts per month and ship products with a total volume of 20,000,000 cubic feet. Assume that each desktop computer requires 125 parts and has a volume of 11 cubic feet.
What are the predetermined overhead allocation rates? Please show work?