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 anactivity-based costing system.
3.	Compare the costs of the doors in requirements 1 and 2. Why do the simple andactivity-based costing systems differ in the cost of an interior and exterior door?
4.	How might Delightful Doors, Inc., use the new cost information from itsactivity-based costing system to address the declining market share for interiordoors?

Deliphtful Doors, Inc.. produces two types of doors, interior and exterior. The company's simple costing system has two direct The owners have heard of other companies in the industry that are now using an activity-based costing system and are curious cost categories (materials and labor) and one indirect cost pool. The simple costing system allocates indirect costs on the basis how an ABC system would affect their product costing decisions. After analyzing the indirect cost pool for Delightful Doors, six of machine-hours. Recently, the owners of Delightful Doors have been concerned about a decline in the market share for theiractivities were identfied as generating indirect costs: production scheduling, material handling, machine setup, assembly interior doors, usually their biggest seller. Information related to Delightrul Doors production for the most recent year follows inspection, and marketing. Delightful Doors collected the following data related to the indirect cost actvities (Click the icon to view the ABC data.) (Click the icon to view the production data.) Data Table More Info used: bg. budgeted, qty , quantity) Unts sold Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups 3,300 135 40 13 1.40 45 75 1,900 Production scheduling Material handing Machine setup S 103,600 Production runs $ 44,160 Material moves S 23,750 Machine setups $ 215 S 23,750 S 70,0D0 $ 10,800 13 225 95 165 140 4,500 140 Inspection Number of inspections Marketing costs were determined to be 3% of the sales revenue for each type or door Print Done 5,500 220 Number of