Business, 05.03.2020 10:41 JasminGodoy
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 comma 000 per month on kitting and $ 32 comma 000 per month on boxing. Compute It allocates the following: font size increased by 1 font size increased by 1 Bold font size increased by 1 font size increased by 1 font size increased by 1 times Kitting costs based on the number of parts used in the computer font size increased by 1 font size increased by 1 Bold font size increased by 1 font size increased by 1 font size increased by 1 times Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400 comma 000 parts per month and ship products with a total volume of 6 comma 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.)
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Compute It uses activity-based costing. Two of Compute It's production activities are kitting (assem...
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