Albany Auto Parts $($AAP$)$ has a Seat Manufacturing Department that uses ABC. AAP's activity cost allocation rates include the following:

$($Click on the icon to view ABC system data.$)$

Suppose Ford has asked for a bid on $22,000$ built$-$in baby seats that would be installed as an option on some Ford SUVs. Each seat has $13$ parts and the direct materials cost per seat is $$8.$ The job would require $6,000$ direct labor hours at a labor wage rate of $$21$ per hour. In addition, AAP will use a total of $400$ machine hours to fabricate some of the parts required for the seats.

Read the requirements.

Direct materials

Direct labor

Allocated overhead:

Machining

Assembling

Packaging

Total cost of order

Divide by number of seats

Average cost per seat