Use the following information for Questions
TechNow uses activitybased 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 $ per month: $ on
assembling and $ 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 parts per month and will ship
products with a total volume of cubic feet. Assume that one type of
product, eBlob, requires an average of parts and requires an average
volume of cubic feet of space. ch
What are the predetermined overhead allocation rates?
Assembling Packaging
A $ per part
$ per cubic foot
B $ per part
$ per cubic foot
C $ per part
$ per cubic foot
D $ per part
$ per cubic foot
What are the unit costs of assembling and packaging for an average
eBlob?
