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to Parts (AAP) has a Seat Manufacturing Department that uses ABC. AAP's activity cost allocation rates include the following: on the icon to view ABC

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to Parts (AAP) has a Seat Manufacturing Department that uses ABC. AAP's activity cost allocation rates include the following: on the icon to view ABC system data.) ord 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 ire 11,000 direct labor hours at a labor wage rate of $20 per hour. In addition, AAP will use a total of 250 machine hours to fab Data table Abany Auto Parts (AAP) has a Seat Manulacturing Department that uses ABC. AAP's activity cost allocation rates include the following (Click on the icon to view ABC system data.) Suppose Ford has asked tor a bid on 30,000 buit in baby weats that would be installed as an option on some Ford SUVs. Each seat has 14 parts and the direct materiais cost per seat is $7. The job would require 11,000 direct labce hours at a labor wage rate of $20 per hour. in addifion. AMP will use a total of 250 machine hours to fabricate some of the parts required for the seats. Read the tequirements. In Requirement 2, you will type the markup as a percentage which should be above 100%. For example, if a company wants a 10% markup (on top of the order's cost), you will multiply the cost by 110% (the full cost plus the 10% markup). That will calculate the total bid price that needs to be charged to both cover the cost AND make the markup \% profit on top of it.) Requirements 1. Calculate the total cost of producing and packaging 30,000 baby seats. Also calculate the average cost per seat. 2. For bidding. AAP 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, AAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $70 per direct labor hour. The baby seat order will require 11,000 direct labor hours. Calculate the total cost of producing the baby seats and the average cost per seat. What price will AAP bid using this system's total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help AAP make a better decision about the bid price it will offer Ford

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