Use the following information for questions 2-4. Two of Compute It s production activities are kitting...

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Use the following information for questions 2-4. 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 Suppose Compute It estimates it will use 400,000,000 parts a month and ship products with a total volume of 20,000,000 cubic feet. Assume that each desktop computer requires 125 parts and has a volume of 10 cubic feet. 2. What is the activity cost allocation rate? Kitting $0.03/part $0.60/part C. $0.03/part d. $33.33/part a. b. 3. What are the kitting and boxing costs assigned to one desktop computer? b. C. d. Boxing $0.05/cubic foot $0.06/cubic foot $1.10/cubic foot $0.91/cubic foot Kitting $ 3.75 $ 0.30 $11.00 $ 4.05 Boxing $ 11.00 $137.50 $ 3.75 $148.50 shups Use the following information for questions 2-4. 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 Suppose Compute It estimates it will use 400,000,000 parts a month and ship products with a total volume of 20,000,000 cubic feet. Assume that each desktop computer requires 125 parts and has a volume of 10 cubic feet. 2. What is the activity cost allocation rate? Kitting $0.03/part $0.60/part C. $0.03/part d. $33.33/part a. b. 3. What are the kitting and boxing costs assigned to one desktop computer? b. C. d. Boxing $0.05/cubic foot $0.06/cubic foot $1.10/cubic foot $0.91/cubic foot Kitting $ 3.75 $ 0.30 $11.00 $ 4.05 Boxing $ 11.00 $137.50 $ 3.75 $148.50 shups

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2Ans c Kitting 003 part Boxing 11 cubic foot Calculation ... View the full answer