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st 6 Daisy Dog Collars uses activity-based costing. Daisy's system has the following features: (Click the icon to view the data table.) Each collar
st 6 Daisy Dog Collars uses activity-based costing. Daisy's system has the following features: (Click the icon to view the data table.) Each collar has two parts, direct materials cost is $10.00 per collar, and direct labor cost is $2.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Daisy will issue a total of 100 purchase orders if Animal Hut accepts Daisy's bid Read the requirements Data table Requirement 1. Compute the total cost Daisy will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per coter (Round the alco to the nearest dollar and the cost per collar to the nearest cent) Total manufacturing cost Manufacturing cost per cottar Requirements 1. Compute the total estimated cost Daisy will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collier 2. For bidding. Daisy adds a 40% markup to total cost What total price will the company bid for the entire Animal Hut onder 3. Suppose that instead of an ABC system, Daisy has a traditional product costing system that allocates indirect costs at the rate of $0.50 per direct labor hour. The dog collar order will require 9,000 direct labor hours. What total price wit Daisy bid using this system's Sotal cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help D better decision about the bid price it will offer Animal Hut Activity Allocation Base Number of purchase orders Number of parts Number of frobed collars Predetermined Overhead Allocation Rate $60.00 per purchase order 0.39 per part 0.14 per collar Purchasing Assembling Packaging sol Print Done Clear all Check answer
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