Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Compute It contracts with its suppliers to pre-kit certain component parts before deliver- ing them to Compute It. Assume this saves $2,000,000 of the

image text in transcribed

image text in transcribed

4. Compute It contracts with its suppliers to pre-kit certain component parts before deliver- ing them to Compute It. Assume this saves $2,000,000 of the kitting cost and reduces the total number of parts by 200,000,000 (because Compute It considers each pre-kit as one part). If a desktop now uses 90 parts, what is the new kitting cost assigned to one desktop? a. $4.50 c. $2.70 b. $1.00 d. $3.75 Use the following information for questions 24. 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 $12,000,000 a month on kitting and $22,000,000 a 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Fundamentals

Authors: John J. Wild

8th Edition

1260728609, 9781260728606

More Books

Students also viewed these Accounting questions

Question

Discuss global cultural differences in GLOBE dimensions.

Answered: 1 week ago

Question

LO1 Discuss the objectives of human resource management.

Answered: 1 week ago