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

View the data table.

bid.

Read the requirements.

nearest cent.$)$

Total manufacturing cost

Manufacturing cost per collar

Requirements

Compute the total estimated cost Drab Dog Collars will incur to purchase the needed

materials and then assemble and package $40,000$ dog collars. Also compute the cost per

collar.

For bidding, Drab Dog Collars adds a $20\%$ markup to total cost. What total price will the

company bid for the entire Animal Hut order?

Suppose that instead of an ABC system, Drab Dog Collars has a traditional product

costing system that allocates indirect costs at the rate of $$9\mathrm{.}30$ per direct labor hour. The

dog collar order will require $10,000$ direct labor hours. What total price will Drab Dog

Collars bid using this system's total cost?

Use your answers to Requirements $2$ and $3$ to explain how ABC can help Drab Dog

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

Data Table Drab Dog Collars uses activity$-$based costing. Drab Dog Collars' system has the following features:

orders if Animal Hut accepts Drab Dog Collars' bid.

Read the requirements.

Requirement $1.$ Compute the total estimated cost Drab Dog Collars 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.$)$

Assembling

Direct labor

Direct materials

Number of units

Packaging

Purchasing

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