Predetermined Overhead Activity Allocation Bas Allocation Rate Purchasing Number of purchase orders 65.00 per purchase order Assembling Packaging Number of parts 0.41 per part Number of finished collars 0.25 per collar Dino Dog Collars uses activity-based costing. Dino's system has the following features: (Click the icon to view the data table.) Each collar has two parts, direct materials cost is $9.00 per collar, and direct labor cost is $2.00 per collar. Suppose Animal Hut has asked for a bid on 40,000 dog collars. Dino will issue a total of 100 purchase orders if Animal Hut accepts Dino's bid. Read the requirements Requirement 1. Compute the total cost Dino will incur to purchase the needed materials and then assemble and package 40,000 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.) Direct materials Direct labor Purchasing Assembling Packaging Total manufacturing cost Packaging Total manufacturing cost Number of units Manufacturing cost per collar Requirement 2 For bidding, Dino adds a 30% markup to total cost. What total price will the company bid for the entire Animal H t order The total Round to the nearest l price the company will bid for the Animal Hut order is $ Requirement 3. Suppose that instead of an ABC system, Dino has a traditional product costing system that allocates indirect costs other than direct materials and direct labor at the rate of $9.00 per direct labor hour. The dog collar order will require 12,000 direct labor hours. What total price will Dino bid using this system's total cost? 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.) Direct materials Direct labor Total mfg. OH cost Total manufacturing cost The total price that Dino will bid if using a traditional product costing system that allocates all costs on the direct abor hours is $ Requirement 4. Use your answers to requirements 2 and 3 to explain how ABC can help Dino make a better decision about the bid price it will offer Animal Hut. Dino's bid would be $ uses the traditional product costing system they decrease their chances of winning the bid. If the company uses the ABC system they i higher using the traditional product costing system than using ABC. If the company ncrease their chance of winning the bid