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Dilon Dog Collars uses activty-based costing. Dilloris system has the following festures: III (Click the icon to vew the data table) Eoch collar has four

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Dilon Dog Collars uses activty-based costing. Dilloris system has the following festures: III (Click the icon to vew the data table) Eoch collar has four parts, Girect material cost is $11.00 per collar, and drect labor cost is $200 per collar. Suppose Animal Hut has asked for a bid on 20,000 dog collars. Ollon will issue a tota 175 purchase orders An Anmal Hu accepts Dillon's big Read the Requirement 2. Foe bidding. Dition adds a 40% markyp to total cost. What total price will the company bid for the ontre Animal Hut onder? (Round to Ene nearest doliar) The lotal price the company wil bid for the Arimal Hut erder is Requirement 3. Suppose that instead of an ABC system, Dilon has a vadeonal product costng system that alocates indrect costs other than drect materials and direct labor at the rate of $940 per direct labor hour. The dog collar order will require 13,000 diect laber hours. What total price wil Dilon bid using tha systemis total cost? Begin by calculating the botal mandacturing cost using the traditional product costing system. (Round to the nearest dellar if a box is not used in the table lesve the box empty, do not select a labe or enter a zero) or enter a zeros Data table 1. Compute the total estimated cost Dillon will incur to purchase the needed materials and then assemble and package 20,000 dog collars. Also compute the cost per collar. 2. For bidding, Dillon adds a 40% 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, Dillon has a traditional product costing system that allocates indirect costs at the rate of $9.40 per direct labor hour. The dog collar order will require 13,000 direct labor hours. What total price will Dillon bid using this system's total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help Dillon make a better decision about the bid price it will offer Animal Hut

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