Points: 0 of 1 Save Sudbury Auto Parts (SAP) has a Seat Manufacturing Department that uses ABC. SAP's activity cost allocation rates include the following (Click on the icon to view ABC system data.) Suppose Ford has asked for a bid on 25,000 built-in baby seats that would be installed as an option on some Ford SUVs. Each seat has 19 parts, and the direct materials cost per seat is $16. The job would require 15,000 direct labour hours at a labour wage rate of $15 per hour. In addition, SAP will use a total of 200 machine hours to fabricate some of the parts required for the seats Requirements Requirement 1. Compute the total cost of producing and packaging 25.000 baby seats. Also compute the average cost per seat (Round the average cost per seat to the nearest cent.) ces Direct materials Modules Direct labour Allocated overhead Machining Assembling Inco Packaging Total cost of order Divide by number of seats Average cost per seat tion SAPluse ABC system data - X Activity Allocation Base Activity Cost Allocation Rate Number of machine hours Machining Assembling $ 75.00 per machine hour Number of parts 0.50 per part Packaging Number of finished seats 0.90 per finished seat Print Done Requirements 1. 2 . . 3. Compute the total cost of producing and packaging 25,000 baby seats. Also compute the average cost per seat. For bidding, SAP adds a 30% markup to total cost. What price will the company bid for the Ford order? Suppose that instead of an ABC system, SAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $35 per direct labour hour. The baby seat order will require 15,000 direct labour hours: Compute the total cost of producing the baby seats and the average cost per seat. What price will SAP bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help SAP make a better decision about the bid price it will offer Ford. 4. Print Done Points: 0 of 1 Save Sudbury Auto Parts (SAP) has a Seat Manufacturing Department that uses ABC. SAP's activity cost allocation rates include the following (Click on the icon to view ABC system data.) Suppose Ford has asked for a bid on 25,000 built-in baby seats that would be installed as an option on some Ford SUVs. Each seat has 19 parts, and the direct materials cost per seat is $16. The job would require 15,000 direct labour hours at a labour wage rate of $15 per hour. In addition, SAP will use a total of 200 machine hours to fabricate some of the parts required for the seats Requirements Requirement 1. Compute the total cost of producing and packaging 25.000 baby seats. Also compute the average cost per seat (Round the average cost per seat to the nearest cent.) ces Direct materials Modules Direct labour Allocated overhead Machining Assembling Inco Packaging Total cost of order Divide by number of seats Average cost per seat tion SAPluse ABC system data - X Activity Allocation Base Activity Cost Allocation Rate Number of machine hours Machining Assembling $ 75.00 per machine hour Number of parts 0.50 per part Packaging Number of finished seats 0.90 per finished seat Print Done Requirements 1. 2 . . 3. Compute the total cost of producing and packaging 25,000 baby seats. Also compute the average cost per seat. For bidding, SAP adds a 30% markup to total cost. What price will the company bid for the Ford order? Suppose that instead of an ABC system, SAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $35 per direct labour hour. The baby seat order will require 15,000 direct labour hours: Compute the total cost of producing the baby seats and the average cost per seat. What price will SAP bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help SAP make a better decision about the bid price it will offer Ford. 4. Print Done