Predetermined Overhead Activity Allocation Base Allocation Rate Purchasing Number of purchase orders $57.00 per purchase order Assembling Number of parts 0.41 per part Packaging Number of finished collars 0.28 per collar Requirements 1. Compute the total estimated cost Dillon will incur to purchase the needed materials and then assemble and package 25,000 dog collars. Also compute the cost per collar. 2. For bidding, Dillon adds a 25% markup to total cost. What total price will the company bi for the entire Animal Hut order? 3. Suppose that instead of an ABC system, Dillon has a traditional product costing system that allocates indirect costs at the rate of $9.00 per direct labor hour. The dog collar orde will require 4,000 direct labor hours. What total price will Dillon bid using this system's total cost? 4. 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. Dillon Dog Collars uses activity-based costing. Dillon's system has the following features: (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 25,000 dog collars. Dillon will issue a total of 75 purchase orders if Animal Hut accepts Dillon's bid. Read the requirement Requirement 1. Compute the total cost Dillon 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 cent.) Total manufacturing cost Manufacturing cost per collar