Question: 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

 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

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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!