Daisy Dog Collars Uses activity-based costing Daisy's system has the following features (Click the icon to view the data table) Each collar has three parts, direct materials cost is $1100 per collar and direct labor cost is $200 per collar. Suppose Animal Hut has asked for a bid on 25.000 dog collars Daisy will issue a total of 125 purchase orders if Animal Hut accepts Daisy's bid Read the requirements Requirement 1. Compute the total cost Daisy will incur to purchase the needed materials and then assemble and package 25,000 dog collars. Also compute the cost per collar. (Round the total cost to the nearest dollar and the cost per collar to the nearest cont.) Direct materials Direct labor Purchasing Total manufacturing cost Manufacturing cost per collar Requirement 2. For bidding, Daisy adds a 40% 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 $ Requirement 3. Suppose that instead of an ABC direct labor at the rate of $9.50 per direct labor hour total cost? Daisy has a traditional product costing system that allocates indirect costs other than direct materials and collar order will require 14,000 direct labor hours What total price will Daisy bid using this system's 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 leave the box empty, do not select a label or enter a zero) Total manufacturing cost Requirement 4. Use your answers to requirements 2 and 3 to explain how ABC can help Daisy make a better decision about the bid price it will offer Animal Hut Daisy's 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 syster they their chance of winning the bid Predetermined Overhead Allocation Rate Activity Allocation Base Number of purchase orders $ 55.00 per purchase order Purchasing Assembling Packaging Number of parts Number of finished collars 0.41 per part 0.25 per collar