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Use the following information for Questions 5-6. TechNow uses activity-based costing. TechNow's two...

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Accounting

Use the following information for Questions 5-6.
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 500,000 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. (ch.19)
What are the predetermined overhead allocation rates?
Assembling Packaging
A. $0.052 per part
$0.273 per cubic foot
B. $0.330 per part
$0.630 per cubic foot
C. $0.780 per part
$1.092 per cubic foot
D. $4.950 per part
$2.520 per cubic foot
What are the unit costs of assembling and packaging for an average
eBlob?
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