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Austin Auto Parts (AAP) has a Seat Manufacturing Department that uses ABC. AAP's a (Click on the icon to view ABC system data.) Suppose Ford has asked for a bid on 22,000 built-in baby seats that would be installed labor wage rate of $21 per hour. In addition, AAP will use a total of 400 machine hours Read the requirements. Requirement 1. Calculate the total cost of producing and packaging 22,000 baby seats. Direct materials Direct labor Allocated overhead: Machining Assembling Packaging Total cost of order Divide by number of seats Average cost per seat uses ABC. AAP's activity cost allocation rates include the following: t would be installed as an option on some Ford SUVs. Each seat has 13 parts and the direct materials cost per seat is $8. The job would re 400 machine hours to fabricate some of the parts required for the seats. + hg 22,000 baby seats. Also calculate the average cost per seat. (Round the average cost per seat to the nearest cent.) Data table Activity Allocation Base Machining Assembling Number of machine hours Packaging Number of parts Number of finished seats Activity Cost Allocation Rate $70.00 per machine hour 0.70 per part 0.90 per finished seat Print Done ect materials cost per seat is $8. The job would require 6,000 direct labor hours at a + per seat to the nearest cent.) y Cost Allocation Rate er machine hour part finished seat Clear all Check answer bac Requirements 1. Calculate the total cost of producing and packaging 22,000 baby seats. Also calculate the average cost per seat. 2. For bidding, AAP adds a 25% markup to total cost. What price will the company bid for the Ford order? 3. Suppose that instead of an ABC system, AAP has a traditional product costing system that allocates manufacturing overhead at a plantwide overhead rate of $45 per direct labor hour. The baby seat order will require 6,000 direct labor hours. Calculate the total cost of producing the baby seats and the average cost per seat. What price will AAP bid using this system's total 4. cost? Use your answers to Requirements 2 and 3 to explain how ABC can help AAP make a better decision about the bid price it will offer Ford. Print Done

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