Indianapolis Auto Parts (IAP) has a Seat Assembly Department that uses activity-based costing. IAP's system has the following estimated activities for the year: Activity Cost Allocation Base Total Purchasing $10,000 # of Purchase Orders Assembling 610,000 # of Parts Packaging 50,000 # of Finished Seats IAP makes two models of seats with the following information: Base Model Luxury Model Number of Total Finished Seats 22,000 28,000 Number of Total Purchase Orders 120 80 Number of Parts per seat 20 35 Number of Total Purchase Orders 120 80 Number of Parts per seat 20 35 Direct Materials Cost per seat $10 $15 Direct Labor Cost per seat $8 $10 Suppose an automobile manufacturer has asked IAP for a bid on 25,000 Luxury Model seats. To fill this order IAP would need 100 purchase orders. Calculate the activity rates for IAP. 1. 2. 3. Calculate the Average Cost Per Seat for the order. 4