Complete requirement $2,3,4$:

cost per collar to the nearest cent.$)$

Requirement $2.$ For bidding, Treat Dog Collars adds a $20\%$ markup to total cost. What total price will the company bid for the entire Seacoast Animal Center order? $($Round to the nearest dollar.$)$

The total price the company will bid for the Seacoast Animal Center

order is

total price will Treat Dog Collars bid using this system's total cost?

mfg$.=$ manufacturing, $OH=$ overhead.$)$

$($For bidding, Treat Dog Collars adds a $20\%$ markup to total cost.$)$

The total price that Treat will bid if using a traditional product costing system that allocates all costs on the direct

labor hours is Requirement $4.$ Use your answers to Requirements $2$ and $3$ to explain how ABC can help Treat Dog Collars make a better decision about the bid price it will offer Seacoast Animal Center.

Treat Dog Collars' bid would be

$|$ using the traditional product costing system than using ABC. If the

company uses the traditional product costing system they

$]$ their chances of winning the bid. If the company uses

the ABC system they

their chance of winning the bid.

$1$: Data Table

$2$: Requirements

Compute the total estimated cost Treat Dog Collars will incur to purchase the needed materials and then assemble and package $45,000$ dog collars. Also compute the cost per collar.

For bidding, Treat Dog Collars adds a $20\%$ markup to total cost. What total price will the company bid for the entire Seacoast Animal Center order?

will Treat Dog Collars bid using this system's total cost?

Use your answers to Requirements $2$ and $3$ to explain how ABC can help Treat Dog Collars make a better decision about the bid price it will offer Seacoast Animal Center.

$(1)$

Assembling

Direct labor

Direct materials

Assembling

Direct labor

Direct materials

Number of units

Packaging

Purchasing

Total mfg$.$ OH cost

$(2)$

Assembling

Direct labor

Direct materials

$(6)$

Number of units

Packaging

Purchasing

Total mfg$.$ OH cost

Number of units

Packaging

Purchasing

Total mfg$.$ OH cost

$(3)$

Assembling

$(7)$

higher

lower

$(8)$

decrease

increase

increase

decrease

increase

$(4)$

Assembling

Direct labor

Direct materials

Number of units

Packaging

Purchasing

Total mfg$.$ OH cost