Question: Data Table Predetermined Overhead Allocation Rate Activity Allocation Base Purchasing Assembling Number of purchase orders Number of parts $57.00 per purchase order 0.41 per part



Data Table Predetermined Overhead Allocation Rate Activity Allocation Base Purchasing Assembling Number of purchase orders Number of parts $57.00 per purchase order 0.41 per part Packaging Number of finished collars 0.10 per collar Requirements 1. 2. 3. Compute the total estimated cost Destiny will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. For bidding, Destiny adds a 35% markup to total cost. What total price will the company bid for the entire Animal Hut order? Suppose that instead of an ABC system, Destiny has a traditional product costing system that allocates indirect costs at the rate of $9.10 per direct labor hour. The dog collar order will require 12,000 direct labor hours. What total price will Destiny bid using this system's total cost? Use your answers to Requirements 2 and 3 to explain how ABC can help Destiny make a better decision about the bid price it will offer Animal Hut. 4. Destiny Dog Collars uses activity-based costing. Destiny's system has the following features: E (Click the icon to view the data table.) Each collar has two parts, direct materials cost is $10.00 per collar, and direct labor cost is $3.00 per collar. Suppose Animal Hut has asked for a bid on 35,000 dog collars. Destiny will issue a total of 125 purchase orders if Animal Hut accepts Destiny's bid. Read the requirements. Requirement 1. Compute the total cost Destiny will incur to purchase the needed materials and then assemble and package 35,000 dog collars. Also compute the cost per collar. (Round the total cost to the nearest dollar and the cost per collar to the nearest cent.) Total manufacturing cost Manufacturing cost per collar
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