Treat Dog Collers uses activity-based costing. Treat's system has the folowing features: (Cick the icon to view the data table.) Each Coler has two parts, direct materials cost is $8.00 per coller, and direct labor coat is $4.00 percolar. Suppose Animal Hut he asked for a bid on 40.000 dog collars. Treat will issue a total of 150 purchase orders if Animal Hut Bccepts Treats bid Read the requirements Requirement 1. Compute the total coet Treat will incur to purchase the needed materials and then assemble and peskare 10,000 cogollers. Also compute the cost per collar Roundnetelcost to the nearest colar and the cost per collar to the nearest cant) Purchasing - X Direct labor II Requirements Direct materials Assembing 1. Compute the total estimated cost Treat will incur to purchase the needed materials and Packaging then assemble and package 40 000 dog collars. Also compute the cost per collar 2 Forbidding. Treat adds a 35% markup ta total cost What total price wil the company bid Total manufacturing cost for the entire Animal Hut oder? Number of units 3. Suppose that instead of an ABC system, Treat has a traditional product costing system that allocates indirect costs at the rate of $9.50 per direct labor hour. The dog clar order wil require 14,000 direct labor hours. Whet total price will Treat bid using this systems Manufacturing cost per colar lulal cusi? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help Treat make a beller decision about the bid price it wil olfer Animal Hul Data table Allocation Bag Predetermined Overhead Allocation Rate Activity Purchasing Assembling Packaging Number of purchase orders Number of parts $57,00 per purchase order 0.39 per part 0.14 per collar Number of finished collars Print Done Help me solve this Demodocs example Get more help Clear all O Check