Question: TechNow uses activity-based costing. TechNow's two production activities are assembling the raw materials needed for each electronic product order and packaging the completed electronic products
TechNow uses activity-based costing. TechNow's two production activities are assembling the raw materials needed for each electronic product order and packaging the completed electronic products for shipment to customers. TechNow estimates that it spends $546,000 per month: $231,000 on assembling and $315,000 on packaging. TechNow allocates as follows: Assembling costs are allocated based on the number of parts in the product order. Packaging costs are allocated based on the cubic feet of space required by the product order. Suppose TechNow estimates it will use 700,000 parts per month and will ship products with a total volume of $00,000 cubic feet. Assume that one type of product, eBlob, requires an average of 15 parts and requires an average volume of 4 cubic feet of space. What are the predetermined overhead allocation rates? What are the unit costs of assembling and packaging for an average eBlob
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