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Carmel Auto Parts (CAP) has a Seat Assembly Department that uses activity-based costing CAP's system has the following activities Click the icon to view the

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Carmel Auto Parts (CAP) has a Seat Assembly Department that uses activity-based costing CAP's system has the following activities Click the icon to view the activities) Each baby seat has 10 parts Direct materials cost per seat is 517. Direct labor cost per seat is 57. Suppose an automobile manufacturer has asked CAP for a bid on 10,000 built-in baby seats that would be installed as an oplion on its SUVS. CAP will use a total of 150 purchase orders if the bid is accepted Read the requirements Requirement 1. Compute the total cost CAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat (Round the average cost per sent to the nearest cent) is Activity costs Total cost of order Choose from any list or enter any number in the input fields and then continue to the next question o Castello Parts (CAP) sety Department that is activity based in CAPs system has the active Click the icon to view the activities) Each baby atlan 10 parts Direct marco persah517 Decoratie 57 Suppose an automobile manufacture has asked CAP for a bid on 10.000 in tuty that would be stated as ons SUV CAP will use a total of 150 purchase orders the bed Read the Requirement. Forbiding, CAP a 15% makip to What WE CAP The need CAP wild ter the entire order Hequirement). Suppone that instead of an NBC. CAP has traditional pride in that no cost the rate of 35 pitet wortow. The boy wat ander will require 5.000 de lo Whal price w CAP tid using this wens total costatning 11 markup to todos Fest compute the cost of the ordering van product conting som Total de CAP using this was coming 15 Requirement 4. Use your answers to Requirements 2 and 3 to explain how ABC can help CAP make a better decision about the bid price, CAP's bid would be s using the traditional system than using ABC Assuming the ABC system more accurately captures the costs caused by the order the traditional system the order. This leads to a bid price and CAP's chance of winning the order The ABC system can CAPS chance of winning the order by bidding a price Choose from any list or enter any number in the input fields and then continue to the next question: -cepted. 0 Data Table umir Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished seats Cost Allocation Rate $90.00 per purchase order $0.80 per part $6.00 per finished seat xpla raditi Print Done al sys o mning the order. The ABC system can CAP's bn 10,000 built i Requirements - X 1. Compute the total cost CAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat. 2. For bidding, CAP adds a 15% markup to total cost. What total price will CAP bid for the entire order? 3. Suppose that instead of an ABC system, CAP has a traditional product costing system that allocates indirect costs at the rate of $35 per direct labor hour. The baby seat order will require 5,000 direct labor hours. What price will CAP bid using this system's total cost assuming a 15% markup to total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help CAP make a better decision about the bid price. Carmel Auto Parts (CAP) has a Seat Assembly Department that uses activity-based costing CAP's system has the following activities Click the icon to view the activities) Each baby seat has 10 parts Direct materials cost per seat is 517. Direct labor cost per seat is 57. Suppose an automobile manufacturer has asked CAP for a bid on 10,000 built-in baby seats that would be installed as an oplion on its SUVS. CAP will use a total of 150 purchase orders if the bid is accepted Read the requirements Requirement 1. Compute the total cost CAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat (Round the average cost per sent to the nearest cent) is Activity costs Total cost of order Choose from any list or enter any number in the input fields and then continue to the next question o Castello Parts (CAP) sety Department that is activity based in CAPs system has the active Click the icon to view the activities) Each baby atlan 10 parts Direct marco persah517 Decoratie 57 Suppose an automobile manufacture has asked CAP for a bid on 10.000 in tuty that would be stated as ons SUV CAP will use a total of 150 purchase orders the bed Read the Requirement. Forbiding, CAP a 15% makip to What WE CAP The need CAP wild ter the entire order Hequirement). Suppone that instead of an NBC. CAP has traditional pride in that no cost the rate of 35 pitet wortow. The boy wat ander will require 5.000 de lo Whal price w CAP tid using this wens total costatning 11 markup to todos Fest compute the cost of the ordering van product conting som Total de CAP using this was coming 15 Requirement 4. Use your answers to Requirements 2 and 3 to explain how ABC can help CAP make a better decision about the bid price, CAP's bid would be s using the traditional system than using ABC Assuming the ABC system more accurately captures the costs caused by the order the traditional system the order. This leads to a bid price and CAP's chance of winning the order The ABC system can CAPS chance of winning the order by bidding a price Choose from any list or enter any number in the input fields and then continue to the next question: -cepted. 0 Data Table umir Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished seats Cost Allocation Rate $90.00 per purchase order $0.80 per part $6.00 per finished seat xpla raditi Print Done al sys o mning the order. The ABC system can CAP's bn 10,000 built i Requirements - X 1. Compute the total cost CAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat. 2. For bidding, CAP adds a 15% markup to total cost. What total price will CAP bid for the entire order? 3. Suppose that instead of an ABC system, CAP has a traditional product costing system that allocates indirect costs at the rate of $35 per direct labor hour. The baby seat order will require 5,000 direct labor hours. What price will CAP bid using this system's total cost assuming a 15% markup to total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help CAP make a better decision about the bid price

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