K Dino Dog Collars uses activity-based costing. Dino's system has the following features: (Click the icon to view the data table.) Each collar has three parts, direct materials cost is $5.00 per collar, and direct labor cost is $4.00 per collar. Suppose Animal Hut has asked for a bid on 40,000 dog collars. Dino will issue a total of 175 purchase orders if Animal Hut accepts Dino's bid. Read the requirements Requirement 1. Compute the total cost Dino will incur to purchase the needed materials and then assemble and package 40,000 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.) L Data table Activity Allocation Base Predetermined Overhead Allocation Rate Purchasing Number of purchase orders Assembling Number of parts $57.00 per purchase order 0.42 per part ind nea Packaging Number of finished collars 0.22 per collar Requirements 5 1. Compute the total estimated cost Dino will incur to purchase the needed materials and then assemble and package 40,000 dog collars. Also compute the cost per collar. For bidding, Dino adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 2. 3. 4. Suppose that instead of an ABC system, Dino has a traditional product costing system that allocates indirect costs at the rate of $9.50 per direct labor hour. The dog collar order will require 12,000 direct labor hours. What total price will Dino bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help Dino make a better decision about the bid price it will offer Animal Hut. 6