Business, 30.03.2020 17:56 potatogirl6811

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 $ 6 comma 000 comma 000 per month on kitting and $ 18 comma 000 comma 000 per month on boxing. Disc 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 Disc estimates it will use 120 comma 000 comma 000 parts per month and ship products with a total volume of 22 comma 500 comma 000 cubic feet per month. Assume that each desktop computer requires 100 parts and has a volume of 9 cubic feet. The predetermined overhead allocation rate for kitting is $0.05 per part and the predetermined overhead allocation rate for boxing is $0.80 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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Answer from: dakotaadkins20

Solution and Explanation:

The Overhead allocation rates are to be computed for determining the total cost of producing 1 unit of disc.

Total of 100 parts are used in disc . therfore, the total kitting cost per disc is ( 100 parts multiply with 0.05). Volume of cubic feet is used in one of the disc. therfore, the total boxing cost per disc is ( 9 cubic feet multiply with 0.80)

Total kitting cost per disc = $5.0

Total boxing cost per disc = $7.2

The total kitting cost and boxing cost for one desktop computer are computed by multiplying the allocation rate applicable for per unit of kitting and boxing with the total number of units needed.

Assuming the overhead rate applicable for per unit of kitting and boxing is the total cost incurred for one desktop computer.

Answer from: Quest

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

Answer from: Quest

the answer is either c or b, i cant be to sure tho.

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Disc uses activity-based costing. Two of Disc's production activities are kitting (assembling the ra...

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