Data table Requirements 1. Compute the total cost EAP will incur to (a) purchase the needed materials and then (b) assemble and (c) package 10,000 baby seats. Also, compute the average cost per seat. 2. For bidding, EAP adds a 15% markup to total cost. What total price will EAP bid for the entire order? 3. Suppose that instead of an ABC system, EAP has a traditional product costing system that allocates indirect costs at the rate of $55 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 15% markup to total cost? 4. Use your answers to Requirements 2 and 3 to explain how ABC can help EAP make a better decision about the bid price. Requirement 1. Compute the total cost EAP will incur to (a) pachase the needed materials and then (b) assernble and (c) package 10.000 baby seats Also, compite the average cost per seat. (Round the average cost per sat to the nearest cent) Activiny costs Total cost ol order Dwide by Avorage cost per theat fovesge ous per \&4 Requirement 2. For bidding. EAP adds a 15\% markup to total cost. What total price will EAP bid for the entire order? EAP will bid 5 for the entire order Requirement 3. Suppose that instead of an ABC system. EAP has a traditional product costing system that allocates indirect costs at the rate of 355 per direct tabor hour. The baby seat ordor will require 12,000 direct labor hours. What ptice will EAP bid using this systerris total cost ascuming a 15% markup fo total cont? Firt compute the total cost of the ordar using a traditional product costing system EAp win bid 5 using this system's total cost assuming a 15% markup to total cost EAP wis bid 5 uting this system's total cost assuming a 15% markat fo total cost Requirement 4, Use your answors to Requirements 2 and 3 oo explain how ABC can help EAP make a better decision about the bid price EAPs bid would be s using the traditional system than using ABC. Astuming the ABC system more Bccuratoly captures the costs caused by the order, the traditional nystem the order. This wads to a bid price and EAP's chance of winning the ordor The ABC oyatem can chance of wirning the order by bidding a price. EWhart Auto Parts (EAP) has a Seat Assembly Department that uses activity based costing EAPrs system has the following activities FIF (Click the loon to view the ackivises) Each baby seat has 25 parts. Direct materials cost pet seat is $12. Direct labor cost per seat is $15. Suppose an automobile manufacturer has asked EAP for a bid on 10,000 bulitin baby seats that would be instaled as an option on ins SUVS. EAP will use a total of 320 purchase orders if the bid is accepted Read the requrements Requirement 1. Compuite the total cost EAP wil incur to (a) purchase the needed materials and then (b) assemble and (c) package 10.000 baby seats Aso, compufe the average cost per seat. (Round the average cost per seat to the nearest cent)