Requirements 1. Compute the total cost EAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 70,000 baby seats. Also, compute the average cost per seat. 2. For bidding, EAP adds a \45 markup to total cost. What total price will EAP bid for the entire order? 3. Suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of \\( \\$ 55 \\) per direct labor hour. The baby seat order will require 11,000 direct labor hours. What price will EAP bid using this system's total cost assuming a \45 markup to total cost? 4. Use your answers to Requirements 2 and 3 to explain how \\( A B C \\) can help EAP make a better decision about the bid price. Elkhart Auto Parts (EAP) has a Seat Assombly Department that uses activity-besod costing. EAP's system has the following activities: (Click the loon to view the activities) Each baty seat hat 22 parts. Diroct matorials cost por seot is \\( \\$ 10 \\). Oiroct labor cont per seat is \\( \\$ 9 \\). \\$uppose an automobile manufacturet has asked EAP for a bid on 70,000 bull-in baby seats that would be installed as an ostion en its SUVs. EAP will use a fotal of 120 purchase orders if the bid is accephed. Read the ceouirements. Requirement 1. Compule the total cost EAP will incur to (a) purchase the needed materials and then (b) assermble and (c) package 70,000 baby seats. Also, compule the average cost per seat. (Round the average cost per seat to Requirement 2. For bidding. EAP adds a \45 markup to total cost. What notal price wil EAP bid for the entire crder? EAP will bid for the entire onder. Requirement 3. Suppose that instesd of an ABC system. EAP has a tradifional sroduct costing system that allocates indirect costs at the rate of \\( \\$ 55 \\) per direct laber hour. The baby seat oeser will require 11,000 direct labor hours. What price will EAP bid using this system's total cost aswming a \45 markup to total cost? First, compule the total cost of the order using a tradisonal product conting system. EAP will bid using this syotemis total cost assuming a \45 markup to total cost. Requirement 4. Use your answers to Requiremeets 2 and 3 to explain how ABC can help EAP make a better decision about the bid price. EAPrs bid would be \\( \\$ \\) using the Iraditional system than using ABC. Astuming the ABC syatem more accurately captures the costs caused by the order, the tradional system the onder. This leads to a bid price and EAP's chance of winning the onder. The ABC system can EAP's shance of wenning the order by bidding a price: Data table