leiate ng Collares uses activity-based costing. Treats system has the following features: Dreat (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 30,000 dog collars. Treat will issue a total of 175 purchase orders if Animal Hut accepts Treat's bid. Read the requirements to Requirement 1. Compute the total cost Treat will incur to purchase the needed materials and then assemble and package 30.000 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.) (1) (2) (3) (5) Total manufacturing cost Manufacturing cost per collar Requirement 2. For bidding. Treat adds a 40% markup to total cost. What total price will the company bid for the entire Animal Hut order? (Round to the nearest dollar.) The total price the company will bid for the Animal Hut order is Requirement 3. Suppose that instead of an ABC system, Treat has a traditional product costing system that allocates indirect costs other than direct materials and direct labor at the rate of $9.50 per direct labor hour. The dog collar order will require 9,000 direct labor hours. What total price will Treat bid using this system's total cost? to the nearest dollar. If a box is not used in the Begin by calculating the total manufacturing cost using the traditional product costing system. table leave the box empty, do not select a label or enter a zero.) (7) (8) (9) |(10) |(11) Total manufacturing cost The total price that Treat will bid if using a traditional product costing system that allocates all costs on the direct labor hours is Requirement 4. Use your answers to requirements 2 and 3 to explain how ABC can help Treat make a better decision about the bid price it will offer Animal Hut Treat's bid would be (12) using the traditional product costing system than using ABC. If the company uses the traditional product costing system they (13) their chances of winning the bid. If the company uses the ABC system they (14) their chance of winning the bid. 9: Data Table Predetermined Overhead Allocation Rate Allocation Base Number of purchase orders Activity Purchasing Assembling Packaging $60.00 per purchase order 0.36 per part Number of parts Number of finished collars 0.19 per collar 0: Requirements 2021 1. 2 Compute the total estimated cost Treat will incur to purchase the needed materials and then assemble and package 30,000 dog collars. Also compute the cost per collar. For bidding. Treat adds a 40% markup to total cost. What total price will the company bid for the entire Animal Hut order? Suppose that instead of an ABC system, Treat 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 9,000 direct labor hours. What total price will Treat bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help Treat make a better decision about the bid price it will offer Animal Hut 3. 4. (1) O Assembling O Direct labor O Direct materials Number of units O Packaging O Purchasing (2) O O Assembling O Direct labor O Direct materials O Number of units O Packaging O Purchasing (3) O Number of units O Packaging O Purchasing O Assembling O Direct labor O Direct materials Number of units O Packaging O Purchasing (4) O O Assembling O Direct labor Direct materials (6) (5) O O Assembling Direct labor Direct materials O Number of units Packaging O Purchasing O Assembling O Direct labor O Direct materials O Number of units O Packaging O Purchasing (7) O O Assembling O Direct labor O Direct materials 0 Number of units O Packaging O Purchasing 0 Total mfg. OH cost (8) O O Assembling O Direct labor O Direct materials Number of units O Packaging O Purchasing O Total mfg. OH cost (9) O O Assembling O Direct labor O Direct materials O Number of units O Packaging O Purchasing O Total mfg. OH cost (10) O O Assembling O Direct labor O Direct materials O Number of units O Packaging O Purchasing Total mfg. OH cost (13) (11) O O Assembling O Direct labor Direct materials O Number of units O Packaging O Purchasing O Total mfg. OH cost (12) O O higher O lower ooo decrease O increase (14) O decrease O increase