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10. Mojito Manufacturing produces Manufacturing produces two types of entry doors: Deluxe and Standard. The allocation basis support costs has been direct labor dollars. For

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10. Mojito Manufacturing produces Manufacturing produces two types of entry doors: Deluxe and Standard. The allocation basis support costs has been direct labor dollars. For 2019, Mojito compiled the following data for the two products: Deluxe Standard 50,000 Sales in units 400.000 $650 Sales price per unit Direct material and labor costs per unit Manufacturing overhead costs per unit $180 $80 $475 $130 $120 Last year, Mojito purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an activity-based costing (ABC) analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 2019: Activity Cost Cost Driver Total Deluxe Standard Setups Machine-related Packing $500,000 $44,000,000 $5,000,000 # of setups # of machine hours # of shipments 500 600,000 250,000 400 300,000 50,000 100 300,000 200,000 Required (10 points): a. Using the current system, what is the estimated 1. total cost of manufacturing one unit for each type of door? 2. profit per unit for each type of door? b. Using the activity-based costing data presented above, 1. compute the cost-driver rate for each overhead activity. 2. compute the revised manufacturing overhead cost per unit for each type of entry door 3. compute the revised total cost to manufacture one unit of each type of entry door. 4. compute the profit per unit for each type of door. c. Is the deluxe door as profitable as the original data estimated? Why or why not

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