Activity Allocation Base Predetermined Overhead Allocation Rate $60.00 per purchase order Purchasing Number of purchase orders...

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Activity Allocation Base Predetermined Overhead Allocation Rate $60.00 per purchase order Purchasing Number of purchase orders Assembling Number of parts 0.40 per part Packaging Number of finished collars 0.25 per collar Destiny Dog Collars uses activity-based costing. Destiny's system has the following features: (Click the icon to view the data table.) Each collar has four parts, direct materials cost is $10.00 per collar, and direct labor cost is $3.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Destiny will issue a total of 175 purchase orders if Animal Hut accepts Destiny's bid. Read the requirements. Requirement 1. Compute the total cost Destiny will incur to purchase the needed materials and then assemble and package 35,000 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.) Direct materials Direct labor Purchasing Assembling Packaging Total manufacturing cost Number of units Manufacturing cost per collar 350000 105000 10500 Activity Allocation Base Predetermined Overhead Allocation Rate $60.00 per purchase order Purchasing Number of purchase orders Assembling Number of parts 0.40 per part Packaging Number of finished collars 0.25 per collar Destiny Dog Collars uses activity-based costing. Destiny's system has the following features: (Click the icon to view the data table.) Each collar has four parts, direct materials cost is $10.00 per collar, and direct labor cost is $3.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Destiny will issue a total of 175 purchase orders if Animal Hut accepts Destiny's bid. Read the requirements. Requirement 1. Compute the total cost Destiny will incur to purchase the needed materials and then assemble and package 35,000 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.) Direct materials Direct labor Purchasing Assembling Packaging Total manufacturing cost Number of units Manufacturing cost per collar 350000 105000 10500

Answer rating: 100% (QA)

Answer To compute the total cost Destiny will incur to purchase the needed materials and then assemb... View the full answer