1 Data Table Activity Purchasing Number of purchase orders 20.00 per purchase order Assembling Number of parts Packaging Number of finished seats Allocation Base Cost Allocation Rate $ 0.60 per part $ 7.00 per finished seat Print Done Elkhart Auto Parts (EAP) has a Seat Assembly Department that uses activity-based costing. EAP's system has the following activities (Click the icon to view the activities.) Each baby seat has 30 parts. Direct materials cost per seat is $14. Direct labor cost per seat is $15. Suppose an automobile manufacturer has asked EAP for a bid on 10,000 built-in baby seats that would be installed as an option on its SUVs. EAP will use a total of 120 purchase orders if the bid is accepted. y at woube Read the requirements. Requirement 1. Compute the total cost EAP will incur to (a) purchase the needed materials and then (b) assemble andd (c) package 10,000 baby seats. Also, compute the average cost per seat. (Round the average cost per seat to the nearest cent.) Activity costs: Total cost of order Divide by Average cost per seat Elkhart Auto Parts (EAP) has a Seat Assembly Department that uses activity-based costing. EAP's system has the following activities: (Click the icon to view the activities.) Each baby seat has 30 parts. Direct materials cost per seat is $14. Direct labor cost per seat is $15. Suppose an automobile manufacturer has asked EAP for a bid on 10,000 built-in baby seats that would be installed as an option on its SUVs. EAP will use a total of 120 purchase orders if the bid is accepted. Read the requirements. Average cost per seat Requirement 2, For bidding, EAP adds a 25% markup to total cost. What total price will EAP bid for the entire order? EAP will bid $ for the entire order Requirement 3. Suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $55 per direct labor hour. The baby seat order will require 11,000 direct labor hours. What price will EAP bid using this system's total cost assuming a 25% markup to total cost? First, compute the total cost of the order using a traditional product costing system. Total cost of order Elkhart Auto Parts (EAP) has a Seat Assembly Department that uses activity-based costing. EAP's system has the following activities (Click the icon to view the activities.) Each baby seat has 30 parts. Direct materials cost per seat is $14. Direct labor cost per seat is $15. Suppose an automobile manufacturer has asked EAP for a bid on 10,000 built-in baby seats that would be installed as an option on its SUVs. EAP will use a total of 120 purchase orders if the bid is accepted Read the requirements Total cost of order EAP will bid $ using this system's total cost assuming a 25% markup to total cost. Requirement 4. Use your answers to Requirements 2 and 3 to explain how ABC can help EAP make a better decision about the bid price EAP's bid would be $ accurately captures the costs caused by the order, the traditional system using the traditional system than using ABC. Assuming the ABC system more the order. This leads to a bid price and chance of winning the order by bidding a EAP's chance of winning the order. The ABC system can EAP'S price