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This is all the information that was given Dillon Dog Collars uses activity-based costing. Dillon's system has the following features: (click the icon to view
This is all the information that was given
Dillon Dog Collars uses activity-based costing. Dillon's system has the following features: (click the icon to view the data table.) Each collar has three parts, direct materials cost is $8.00 per collar, and direct labor cost is $3.00 per collar. Suppose Animal Hut has asked for a bid on 40,000 dog collars. Dillon will issue a total of 150 purchase orders if Animal Hut accepts Dillon's bid. Read the requirements Requirements De1. Compute the total estimated cost Dillon will incur to purchase the needed materials and then assemble and package 40,000 dog collars. Also compute the cost per hoicollar For bidding Dillon adds a 40% markup to total cost what total price will the company bid for the entire Animal Hut order? Suppose that instead of an ABC system, Dillon has a traditional product costing system that allocates indirect costs at the rate of $9.30 per direct labor hour. The dog collar order will require 12,000 direct labor hours. What total price will Dillon bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help Dillon make a better decision about the bid price it will offer Animal Hut. 2. o. e P c @ inu 3. ord4. ate: Print Done for abo ry Show all d table csv Dillon Dog Collars uses activity-based costing. Dillon's system has the following features: (click the icon to view the data table.) Each collar has three parts, direct materials cost is $8.00 per collar, and direct labor cost is $3.00 per collar. Suppose Animal Hut has asked for a bid on 40,000 dog collars. Dillon will issue a total of 150 purchase orders if Animal Hut accepts Dillon's bid. Read the requirements Requirements De1. Compute the total estimated cost Dillon will incur to purchase the needed materials and then assemble and package 40,000 dog collars. Also compute the cost per hoicollar For bidding Dillon adds a 40% markup to total cost what total price will the company bid for the entire Animal Hut order? Suppose that instead of an ABC system, Dillon has a traditional product costing system that allocates indirect costs at the rate of $9.30 per direct labor hour. The dog collar order will require 12,000 direct labor hours. What total price will Dillon bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help Dillon make a better decision about the bid price it will offer Animal Hut. 2. o. e P c @ inu 3. ord4. ate: Print Done for abo ry Show all d table csvStep by Step Solution
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