Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 th entire Animal Hut order?

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 th entire Animal Hut order?

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...
See similar textbooks
icon
Related questions
Question

see enclosed jpeg please. Explain as clear as possible how you come to the solution.

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?
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?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Database management system (DBMS)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Accounting Information Systems
Accounting Information Systems
Finance
ISBN:
9781337552127
Author:
Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS