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Disc uses activity-based costing. Two of Disc's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing
Disc uses activity-based costing. Two of Disc'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 Disc spends $5,000,000 per month on kitting and $13,000,000 per month on boxing. (Click the icon to view allocation information.) (Click the icon for additional information.) If a desktop now uses 130 parts, what is the new kitting cost assigned to one desktop? (Round all calculations to the nearest cent.) More info A. $5.00 B. $5.201 OC. $6.50 D. $6.25 Disc allocates the following: Kitting costs based on the number of nrts used in the computer Boxing costs based on the cubic feet of space the computer requires More info - X OA. $5.00 B. $5.20 OC. $6.50 OD. $6.25 Disc 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 More info Suppose Disc estimates it will use 125,000,000 parts per month and ship products with a total volume of 20,000,000 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 11 cubic feet. The predetermined overhead allocation rate for kitting is $0.04 per part and the predetermined overhead allocation rate for boxing is $0.65 per cubic foot. The kitting and boxing costs assigned to one computer are $5.00 and $7.15, respectively. Disc contracts with its suppliers to pre-kit certain component parts before delivering them to Disc. Assume this saves $1,000,000 of the kitting cost and reduces the total number of parts by 45,000,000 (because Disc considers each pre-kit as one part). Next
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