solved Part 3Dino Dog Collars uses activity-based costing.Dino’s system has the

Part 3Dino Dog Collars uses activity-based costing.Dino’s system has the following features:Each collar has three parts, direct materials cost is $5.00 per collar, and direct labor cost is $2.00 per collar. Suppose Animal Hut has asked for a bid on 20,000 dog collars. Dino will issue a total of 75 purchase orders if Animal Hut accepts Dino’s bid. Requirement 1. Compute the total cost Dino will incur to purchase the needed materials and then assemble and package 20,000 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 materials5Direct labor2AssemblingTotal manufacturing costPurchasingManufacturing cost per collarCompute the total estimated cost Dino will incur to purchase the needed materials and then assemble and package 20,000 dog collars. Also compute the cost per collar. For bidding,Dino adds a 40% markup to total cost. What total price will the company bid for the entire Animal Hut order?Suppose that instead of an ABC system, Dino has a traditional product costing system that allocates indirect costs at the rate of $9.10 per direct labor hour. The dog collar order will require 13,000 direct labor hours. What total price will Dino bid using this system’s total cost? 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. Part 4southwest, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications. The president of the company expects to incur of indirect costs this year, and she expects her firm to work direct labor hours. ‘s systems consultants provide direct labor at a rate of per hour. Clients are billed at % of direct labor cost. Last month, ‘s consultants spent hours on ‘s engagement.Requirements1.Compute ‘s predetermined overhead allocation rate per direct labor hour.2.Compute the total cost assigned to the engagement.3.Compute the operating income from the engagement.Requirement 1. Compute ‘s predetermined overhead allocation rate per direct labor hour.Select the formula, then enter the amounts to calculate the predetermined overhead (OH) allocation rate. part 5Data Table

Direct materials purchased (on account)

$7,200

Conversion costs
incurred

17,000

Number of calculators
produced

200
calculators

Number of calculators
sold (on account, at $112 each)

195
calculators

Diaz produces electronic calculators. Suppose ‘s standard cost per calculator is for direct materials and for conversion costs. The following data apply to August activities:Requirements1. Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account.2. The beginning balance of Finished Goods Inventory was . Use a T-account to find the ending balance of Finished Goods Inventory.Requirement 1. Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account. (Record debits first, then credits. Exclude explanations from journal entries.)Journalize the purchase of raw materials.
Part 6Strength-testing one item from each batch of panels $64,000Training employees in TQM 30,000Training suppliers in TQM 40,000Identifying suppliers who commit to on-time delivery of perfect-quality materials 54,000 Clegg, Inc. manufactures door panels. Suppose is considering spending the following amounts on a new total quality management (TQM) program:Requirement 1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.Cost Type of Quality CostStrength-testing one item from each batch of panels Clegg expects the new program would save costs through the following:1. Classify each cost as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.2. Should Clegg implement the new quality program? Give your reason