Regina Auto Parts (RAP) has a Seat Manufacturing Department that uses ABC. RAP's activity cost allocation rates include the following: 5 (Click on the icon to view ABC system data.) Suppose Ford has asked for a bid on 30,000 built-in baby seats that would be installed as an option on some Ford SUVs. Each seat has 14 parts, and the direct materials cost per seat is $7. The job would require 11,000 direct labour hours at a labour wage rate of $20 per hour. In addition, RAP will use a total of 250 machine hours to fabricate some of the parts required for the seats. Requirements Requirement 1. Compute the total cost of producing and packaging 30,000 baby seats. Also compute the average cost per seat (Round the average cost seat to the nearest cent.) Direct materials Requirements ABC system data Direct labour Allocated overhead: Machining Assembling Packaging Total cost of order Divide by number of seats Allocation Base Number of machine hours Activity Machining Assembling Packaging Activity Cost Allocation Rate $ 80.00 per machine hour 0.90 per part 1.40 per finished seat Number of parts 1. Compute the total cost of producing and packaging 30,000 baby seats. Also compute the average cost per seat 2. For bidding, RAP adds a 15% markup to total cost. What price will the company bid for the Ford order? 3. Suppose that instead of an ABC system, RAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $70 per direct labour hour. The baby seat order will require 11,000 direct labour hours. Compute the total cost of producing the baby seats and the average cost per seat. What price will RAP bid using this system's total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help RAP make a better decision about the bid price it will offer Ford. Number of finished seats Average cost per seat Print Done Print Done