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Destiny Dog Collars uses activity - based costing. Destiny Dog Collars' system has the following features: Destiny Dog Collars uses activity-based costing. Destiny Dog Collars'
Destiny Dog Collars uses activitybased costing. Destiny Dog Collars' system has the following features:
Destiny Dog Collars uses activity-based costing. Destiny Dog Collars' system has the following features. View the data table. Each collar has two parts, direct materials cost is $9.00 per collar, and direct labor cost is S2.00 per collar. Suppose DogSmart has asked for a bid on 25,000 dog collars Destiny Dog Collars will issue a total of 75 purchase orders if DogSmart accepts Destiny Dog Collars' bid. Read the requirements. Requirement I.Compute the total estimated cost Destiny Dog Collars will incurto purchase the needed materials and then assemble and package 26,000 dog collars. Also compute the cost per collar. (Round the total cost to the nearest dollar and the cost per collar to the nearest cent) Packaging Total manufacturing cost Number of units Manufacturing cost per collar Requirements Data Table Cost Pool Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished collars print Predetermined Overhead Allocation Rate $57 per purchase order 0.39 per part 0.25 per collar Done 2. 3. 4. Compute the total estimated cost Destiny Dog Collars will incur to purchase the needed materials and then assemble and package 25,000 dog collars. Also compute the cost per collar. For bidding, Destiny Dog Collars adds a 20% markup to total cost. What total price will the company bid for the entire DogSmart order? Suppose that instead of an ABC system, Destiny Dog Collars has a traditional product costing system that allocates indirect costs at the rate of $9.10 per direct labor hour The dog collar order will require 14,000 direct labor hours. What total price Will Destiny Dog Collars bid using this system's total cost? use your answers to Requirements 2 and 3 to explain how ABC can help Destiny Dog Collars make a better decision about the bid price it will offer DogSmart print Done Clear all Check answer
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