Data tableActivityPurchasingAssemblingPackagingAllocation BaseNumber of purchase ordersNumber of partsNumber of finished collarsPrintPredetermined OverheadAllocation Rate$55.00 per purchase order0.30 per part0 22 per collarDone Dusty Dog Collars uses activity-based costing. Dusty's system has the following features:(Click the icon to view the data table.)Each collar has three parts, direct materials cost is $9.00 per collar, and direct labor cost is $3.00 percollar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dusty will issue a total of 200purchase orders if Animal Hut accepts Dusty's bidRead the requirements.Requirement 1. Compute the total cost Dusty will incur to purchase the needed materials and thenassemble and package 25.000 dog collars. Also compute the cost per collar. (Round the total cost tothe nearest dollar and the cost per collar to the nearest centTotal manufacturing costESSE)Manufacturing cost per collar

Lets understand the basics.Total costs for the product is all cost that are incurred to product…

Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished collars Predetermined Overhead Allocation Rate $55.00 per purchase order 0.30 per part 0.22 per collar

Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts Number of finished collars Predetermined Overhead Allocation Rate $55.00 per purchase order 0.30 per part 0.22 per collar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Data table
Activity
Purchasing
Assembling
Packaging
Allocation Base
Number of purchase orders
Number of parts
Number of finished collars
Print
Predetermined Overhead
Allocation Rate
$55.00 per purchase order
0.30 per part
0 22 per collar
Done

Dusty Dog Collars uses activity-based costing. Dusty's system has the following features:
(Click the icon to view the data table.)
Each collar has three parts, direct materials cost is $9.00 per collar, and direct labor cost is $3.00 per
collar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dusty will issue a total of 200
purchase orders if Animal Hut accepts Dusty's bid
Read the requirements.
Requirement 1. Compute the total cost Dusty 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
ESSE)
Manufacturing cost per collar

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