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1. Compute the total estimated cost Drab will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. 2. For bidding, Drab adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 3. suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $54 per direct labor hour. The baby seat order will require 12,000 direct labor hours. What price will EAP bid using this system's total cost assuming a 20% markup to total cost?

1. Compute the total estimated cost Drab will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. 2. For bidding, Drab adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 3. suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $54 per direct labor hour. The baby seat order will require 12,000 direct labor hours. What price will EAP bid using this system's total cost assuming a 20% markup to total cost?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 69P: (Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for...
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I actually sent this question already but I tried to cut it in half because I didn't know if I could get all 4 requirements to the question answered. Please answer all 4 requirements. It's cool if it counts as 2 of my questions. 

Study plan example 19.3 use activity-based management (ABM) to make decisions CYU19-1 Drab Dog Collars uses activity-based costing. Drab's system has the following features: Predetermined overhead Activity Allocation base Allocation rate Purchasing Assembling Packaging Number of purchase orders Number of parts $50.00 per purchase order 0.40 per part Number of finished collars .23 per collar Each collar has four parts, direct materials cost is $6.00 per collar, and direct labor cost is $4.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Drab will issue a total of 100 purchase orders if Animal Hut accepts Drab's bid. 1. Compute the total estimated cost Drab will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. 2. For bidding, Drab adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 3. suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $54 per direct labor hour. The baby seat order will require 12,000 direct labor hours. What price will EAP bid using this system's total cost assuming a 20% markup to total cost? use your answers to requirements 2 and 3 to explain how ABC can help EAP make a better decision about the bid price. 4.
Transcribed Image Text:Study plan example 19.3 use activity-based management (ABM) to make decisions CYU19-1 Drab Dog Collars uses activity-based costing. Drab's system has the following features: Predetermined overhead Activity Allocation base Allocation rate Purchasing Assembling Packaging Number of purchase orders Number of parts $50.00 per purchase order 0.40 per part Number of finished collars .23 per collar Each collar has four parts, direct materials cost is $6.00 per collar, and direct labor cost is $4.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Drab will issue a total of 100 purchase orders if Animal Hut accepts Drab's bid. 1. Compute the total estimated cost Drab will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. 2. For bidding, Drab adds a 20% markup to total cost. What total price will the company bid for the entire Animal Hut order? 3. suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $54 per direct labor hour. The baby seat order will require 12,000 direct labor hours. What price will EAP bid using this system's total cost assuming a 20% markup to total cost? use your answers to requirements 2 and 3 to explain how ABC can help EAP make a better decision about the bid price. 4.
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