Question

Orange uses activity-based costing. Two of Oranges production activities are kitting (assembling the raw materials needed foMore Info Orange allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs baMore Info Suppose Orange estimates it will use 275,000,000 parts per month and ship products with a total volume of 26,562,50

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Cost per part = Total kitting cost/total number of parts

= (11,000,000-500,000)/(275,000,000-65,000,000)

= 10,500,000/210,000,000

= $0.05 per part

Hence. Cost assigned to one desktop = Number of parts*Rate per part

= 225*0.05

= $11.25 per unit

Hence, the answer is C.

Add a comment
Know the answer?
Add Answer to:
Orange uses activity-based costing. Two of Orange's production activities are kitting (assembling the raw materials needed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Mouse uses activity-based costing. Two of Mouse's production activities are kitting (assembling the raw materials needed...

    Mouse uses activity-based costing. Two of Mouse's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boring the completed products for shipment to customers. Assume that Mouse spends $5,500,000 per month on kitting and $14,000,000 per month on boxing (Click the icon to view allocation information.) (Click the icon for additional information) If a desktop now uses 175 parts, what is the new kitting cost assigned to one desktop? (Round all i More...

  • Pell uses activity-based costing. Two of Pell's production activities are kitting (assembling the raw materials needed...

    Pell uses activity-based costing. Two of Pell'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 Pell spends $9,000,000 per month on kitting and $13,000,000 per month on boxing. Pell 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 Pell estimates it...

  • Rosie Learns, Inc. manufactures robots and uses an activity-based costing system. Rosie Learns’ activities and related...

    Rosie Learns, Inc. manufactures robots and uses an activity-based costing system. Rosie Learns’ activities and related data are listed below: Activity Budgeted Cost Allocation Base Predetermined Overhead Allocation Rate Materials Handling $230,000 Number of Parts $1.50 Assembly 3,200,000 Number of assembling direct labor hours 16.00 Finishing 150,000 Number of finished units* 3.00 *The number of units receiving the finish activity, not the number of units transferred to Finished Goods Inventory. Rosie Learns produces two models of robots, the Rosie V...

  • Classic Technology Co. manufactures DVDs for computer software and entertainment companies. Classic uses job order costing....

    Classic Technology Co. manufactures DVDs for computer software and entertainment companies. Classic uses job order costing. On June 2, Classic began production of 5,400 DVDs, Job 423, for Digital Pictures for $1.10 sales price per DVD. Classic promised to deliver the DVDs to Digital Pictures by June 5. Classic incurred the following direct costs: (Click the icon to view the costs.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare a job cost record for Job...

  • Several years after reengineering is production process. Trudell Corporation hired a new controller Ashley Adams (Click...

    Several years after reengineering is production process. Trudell Corporation hired a new controller Ashley Adams (Click the icon to view additional Information) For the upcoming your, Trudel's budgeted ABC manufacturing overhead allocation rates are as follows: m (Click the icon to view the additional data.) The number of parts is now a feasible allocation base because Trudell recently installed a planwide computer stem. Trudel produces to wheel models. Standard and Deluxe Budgeted data for the upcoming year are as follows:...

  • Prescott Corp. manufactures computer desks in its Rochester, New York, plant. The company uses activity-based costing...

    Prescott Corp. manufactures computer desks in its Rochester, New York, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow (Click the icon to view the activity areas and related data) Requirements 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. 2. Premanufacturing activities such as product design, were assigned to the Standard desks at S6 each and to the Unpainted desks at...

  • Hone Corp. manufactures computer desks in its Phoenix, Arizona, plant. The company uses activity-based costing to...

    Hone Corp. manufactures computer desks in its Phoenix, Arizona, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. Hone Corp. manufactures computer desks in its Pheonix, Arizona, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. (Click the icon to view the activity areas and related data.) Requirements 1. Compute the per-unit...

  • Lawton Corp. manufactures computer desks in its Philadephia, Pennsylvania, plant. The company uses activity-based costing to...

    Lawton Corp. manufactures computer desks in its Philadephia, Pennsylvania, plant. The company uses activity-based costing to allocate all manufacturing conversion costs (direct labor and manufacturing overhead). Its activities and related data follow. (Click the icon to view the activity areas and related data.) Read the requirements Requirement 1. Compute the per-unit manufacturing product cost of Standard desks and Unpainted desks. (Complete all input fields. Enter a "0" for any zero amounts. Round your answers to the nearest whole dollar.) Standard...

  • Several years after reengineering its production process, King Corporation hired a The number of parts is...

    Several years after reengineering its production process, King Corporation hired a The number of parts is now a feasible allocation base because King recently installed new controller, Alice Brown. a plantwide computer system. King produces two wheel models: Standard and (Click the icon to view additional information.) Deluxe. Budgeted data for the upcoming year are as follows: (Click the loon to view the additional data.) For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows: (Click...

  • Several years after reengineering its production process, Kane Corporation hired a new controller, Christine Erickson. i...

    Several years after reengineering its production process, Kane Corporation hired a new controller, Christine Erickson. i (Click the icon to view additional information.) For the upcoming year, Kane's budgeted ABC manufacturing overhead allocation rates are as follows: BE: (Click the icon to view the additional data.) 0 X - More Info She developed an ABC system very similar to the one used by Kane's chief rival. Part of the reason Erickson developed the ABC system was because Kane's profits had...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT