Question: Compute It uses activity - based costing. Two of Compute It ' s production activities are kitting ( assembling the raw materials needed for each
Compute It uses activitybased costing. Two of Compute Its 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 Compute It spends $ comma per month on kitting and $ comma per month on boxing. Compute It allocates the following:
font size increased by font size increased by Bold font size increased by font size increased by font size increased by timesKitting costs based on the number of parts used in the computer
font size increased by font size increased by Bold font size increased by font size increased by font size increased by timesBoxing costs based on the cubic feet of space the computer requires
Suppose Compute It estimates it will use comma parts per month and ship products with a total volume of comma cubic feet per month. Assume that each desktop computer requires parts and has a volume of cubic feet.
What are the predetermined overhead allocation rates
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