Compute it uses activity-based costing. Two of Compute it's 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute It 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 Compute It estimates it will use 400.000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. The predetermined overhead allocation rate for kitting is $2.40 per part and the predetermined overhead allocation rate for boxing is $5.00 per cubic foot. What are the kitting and boxing costs assigned to one desktop computer? (Round all calculations to the nearest cent.) O A. OB. O C. O D. $ $ $ $ Kitting 300.00 $ Kitting 30.00 $ Kitting 10.00 S Kitting 9.60 S Boxing Boxing 137.50 Boxing 10.00 300.00 Boxing 148.50

Compute it uses activity-based costing. Two of Compute it's 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute It 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 Compute It estimates it will use 400.000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. The predetermined overhead allocation rate for kitting is $2.40 per part and the predetermined overhead allocation rate for boxing is $5.00 per cubic foot. What are the kitting and boxing costs assigned to one desktop computer? (Round all calculations to the nearest cent.) O A. OB. O C. O D. $ $ $ $ Kitting 300.00 $ Kitting 30.00 $ Kitting 10.00 S Kitting 9.60 S Boxing Boxing 137.50 Boxing 10.00 300.00 Boxing 148.50

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Description: Compute It uses activity-based costing. Two of Compute It's 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 spen

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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Compute It uses activity-based costing. Two of Compute It's 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute It 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 Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. The predetermined overhead allocation rate for kitting is $2.40 per part and the predetermined overhead allocation rate for boxing is $5.00 per cubic foot. What are the kitting and boxing costs assigned to one desktop computer? (Round all calculations to the nearest cent.) O A. O B. O C. O…
Keyboard uses activity-based costing. Two of Keyboard's 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 Keyboard spends $10,000,000per month on kitting and $18,000,000 per month on boxing.Keyboardallocates 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 Keyboard estimates it will use 250,000,000 parts per month and ship products with a total volume of 22,500,000 cubic feet per month. Assume that each desktop computer requires 175 parts and has a volume of 7 cubic feet. The predetermined overhead allocation rate for kitting is $0.04 per part and the predetermined overhead allocation rate for boxing is $0.80 per cubic foot. What are the kitting and boxing costs assigned to one desktop computer?
Use the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute It 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 Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. Compute It contracts with its suppliers to pre-kit certain component parts before delivering them to Compute It. Assume this saves $210,000 of the kitting cost and reduces the total number of parts by 100,000 (because Compute It considers each…
Use the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute It 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 Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet.Compute It contracts with its suppliers to pre-kit certain component parts before delivering them to Compute It. Assume this saves $210,000 of the kitting cost and reduces the total number of parts by 100,000 (because Compute It considers each…
Use the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s 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 $960,000 per month on kitting and $32,000 per month on boxing. Compute it 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 Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. What are the predetermined overhead allocation rates?
The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 20 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $2.75 per part Machining Machine hours $3.00 per machine hour Assembling Number of parts $1.50 per part Packaging Number of finished units $2.75 per finished unit What is the cost of assembling per chair?