1.

Calculate the cost of an interior door and an exterior door under the existing simple costing system.

2.

Calculate the cost of an interior door and an exterior door under an? activity-based costing system.

3.

Compare the costs of the doors in requirements 1 and 2. Why do the simple and? activity-based costing systems differ in the cost of an interior door and an exterior? door?

4.

How might Daring?Doors, Inc., use the new cost information from its? activity-based costing system to address the declining market share for interior? doors?

Data Table Interior Exterior Units sold Selling price 3,100 1,700 $ 120 $ 195 Direct material cost per unit $ 50 $ 90 Direct manufacturing labor cost per hour $ 32 $ 32 Direct manufacturing labor-hours per unit 1.40 2.35 Production runs 35 75 Material moves 72 162 Machine setups Machine-hours Number of inspections 35 130 5,500 4,500 210 130 Print Done