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