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Daisy Dog Collars uses activity-based costing. Daisy's system has the following features: (Click the icon to view the data table.) Read the requirements. Requirements 1.
Daisy Dog Collars uses activity-based costing. Daisy's system has the following features: (Click the icon to view the data table.) Read the requirements. Requirements 1. Compute the total estimated cost Daisy will incur to purchase the needed materials and then assemble and package 25,000 dog collars. Also compute the cost per collar. 2. For bidding, Daisy adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 3. Suppose that instead of an ABC system, Daisy has a traditional product costing system that allocates indirect costs at the rate of $9.20 per direct labor hour. The dog collar order will require 11,000 direct labor hours. What total price will Daisy bid using this system's total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help Daisy make a better decision about the bid price it will offer Animal Hut. Data table
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