Muncie Auto Parts (MAP) has a Seat Assembly Department that uses activity-based costing. MAP's system has the following activities: (Click the icon to view the activities.) Each baby seat has 35 parts. Direct materials cost per seat is $19. Direct labor cost per seat is $6. Suppose an automobile manufacturer has asked MAP for a bid on 10,000 built-in baby seats that would be installed as an option on its SUVS. MAP will use a total of 150 purchase orders if the bid is accepted. Read the requirements. Requirement 1. Compute the total cost MAP will incurto (a) purchase the needed materials and then b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat. (Round the average cost per seat to the nearest cent.) Activity costs: Total cost of order Divide by Average cost per seat Requirement 2. For bidding, MAP adds a 20% markup to total cost. What total price will MAP bid for the entire order? MAP will bid $ for the entire order. Requirement 3. Suppose that instead of an ABC system, MAP has a traditional product costing system that allocates indirect costs at the rate of $40 per direct labor hour. The baby seat order will require 13,000 direct labor hours. What price will MAP bid using this system's total cost assuming a 20% markup to total cost? First, compute the total cost of the order using a traditional product oosting system. i Requirements - X A Data Table - X Total cost of order using this system's total cost assuming a 20% markup to total cost. MAP will bid $ Cost Allocation Rate Activity purchase 1. Compute the total cost MAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat. 2. For bidding, MAP adds a 20% markup to total oost. What total price will MAP bid for the entire order? 3. Suppose that instead of an ABC system, MAP has a traditional product costing system that allocates indirect costs at the rate of $40 per direct labor hour. The baby seat order will require 13,000 direct labor hours. What price will MAP bid using this system's total cost assuming a 20% markup to total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help MAP make a better decision about the bid price. Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished seats $ 30.00 per purchase order $ 0.80 per part $ 7.00 per finished seat Requirement 4. Use your answers to Requirements 2 and 3 to explain how ABC can help MAP make a better decision about the bid price. using the traditional system than using ABC. Assuming the ABC system MAP's bid would be $ more the order. This leads to accurately captures the costs caused by the order, the traditional system L MAP's chance of winning the order. The ABC system bid price and can MAP's chance of winning the order by bidding a price, Print Done Print Done Choose from any list or enter any number in the input fields and then continue to the next