Brampton Auto Parts (BAP) has a Seat Manufacturing Department that uses ABC. BAP'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 23,000 built-in baby seats that would be installed as an option on some Ford SUVs. Each seat has 15 parts, and the direct materials cost per seat is $14. The job would require 12,000 direct labour hours at a labour wage rate of $19 per hour. In addition, BAP will use a total of 100 machine hours to fabricate some of the parts required for the seats. Requirements Requirements Requirement 1. Compute the total cost of producing and packaging 23,000 baby seats. Also compute the average cost per seat. (Round the 1. Compute the total cost of producing and packaging 23,000 baby seats. Also compute the average cost per seat. Direct materials Direct labour Allocated overhead: Machining Assembling Packaging Total cost of order Divide by number of seats Average cost per seat 2. For bidding, BAP adds a 35% markup to total cost. What price will the company bid for the Ford order? 3. Suppose that instead of an ABC system, BAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $50 per direct labour hour. The baby seat order will require 12,000 direct labour hours. Compute the total cost of producing the baby seats and the average cost per seat. What price will BAP bid using this system's total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help BAP make a better decision about the bid price it will offer Ford. ABC system data Activity Allocation Base Activity Cost Allocation Rate Machining Assembling Packaging Number of machine hours Number of parts Number of finished seats $ 20.00 per machine hour 0.80 per part 1.00 per finished seat