Dillon Dog Collars uses activity$-$based costing. Dillon's system has the following features:

$($Click the icon to view the data table.$)$

Read the requirements.

Data table

Requirements

Compute the total estimated cost Dillon will incur to purchase the needed materials and

then assemble and package $20,000$ dog collars. Also compute the cost per collar.

For bidding, Dillon adds a $40\%$ markup to total cost. What total price will the company bid

for the entire Animal Hut order?

Suppose that instead of an ABC system, Dillon has a traditional product costing system

that allocates indirect costs at the rate of $$9\mathrm{.}40$ per direct labor hour. The dog collar order

will require $13,000$ direct labor hours. What total price will Dillon bid using this system's

total cost?

Use your answers to Requirements $2$ and $3$ to explain how ABC can help Dillon make a

better decision about the bid price it will offer Animal Hut.