Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Treat Dog Collars uses activity-based costing. Treat's system has the following features: LOADING... (Click the icon to view the data table.) Each collar has four

Treat Dog Collars uses activity-based costing. Treat's system has the following features: LOADING... (Click the icon to view the data table.) Each collar has four parts, direct materials cost is $6.00 per collar, and direct labor cost is $2.00 per collar. Suppose Animal Hut has asked for a bid on 30,000 dog collars. Treat will issue a total of 150 purchase orders if Animal Hut accepts Treat's bid. Read the requirements LOADING... . Question content area bottom Part 1 Requirement 1. Compute the total cost Treat will incur to purchase the needed materials and then assemble and package 30,000 dog collars. Also compute the cost per collar. (Round the total cost to the nearest dollar and the cost per collar to the nearest cent.) Total manufacturing cost Manufacturing cost per collar Part 2 Requirement 2. For bidding, Treat adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? (Round to the nearest dollar.) The total price the company will bid for the Animal Hut order is . Part 3 Requirement 3. Suppose that instead of an ABC system, Treat has a traditional product costing system that allocates indirect costs other than direct materials and direct labor at the rate of $9.50 per direct labor hour. The dog collar order will require 11,000 direct labor hours. What total price will Treat bid using this system's total cost? Begin by calculating the total manufacturing cost using the traditional product costing system. (Round to the nearest dollar. If a box is not used in the table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, Maureen Sterling

7th Canadian Edition

1260065952, 978-1260065954

More Books

Students also viewed these Accounting questions

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago

Question

=+which it operates?

Answered: 1 week ago

Question

=+How should we organize a book to maximize learning and interest

Answered: 1 week ago