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Evansville Auto Parts (EAP) has a Seat Assembly Department that uses activity-based costing. EAP's system has the following activities: (Click the icon to view
Evansville Auto Parts (EAP) has a Seat Assembly Department that uses activity-based costing. EAP's system has the following activities: (Click the icon to view the activities.) Each baby seat has 22 parts. Direct materials cost per seat is $11. Direct labor cost per seat is $12. Suppose an automobile manufacturer has asked EAP for a bid on 10,000 built-in baby seats that would be installed as an option on its SUVS. EAP will use a total of 160 purchase orders if the bid is accepted. Read the requirements. Data table Requirement 1. Compl (Round the average co Activity Allocation Base Activity costs: Purchasing Assembling Packaging Number of purchase orders Number of parts Number of finished seats Cost Allocation Rate $70.00 per purchase order $0.60 per part $6.00 per finished seat Total cost of order Divide by Print Done Average cost per seat Requirement 2. For bidding, EAP adds a 40% markup to total cost. What total price will EAP bid for the entire order? EAP will bid for the entire order. age 10,000 baby seats. Also, compute the average cost per seat.
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