#4 show all steps please!!

Ledngton Doors, Inc. was incorporated in the province of British Columbia on October 28, 2011. The company makes custom doors for Luxury homes. Although the operations of the company focus mainly on custom built doors, once in a while the company carries out mass production of standard doors on order Allison Forsythe, the company's Chief Financial Officer is studying the following report rating to the company's budgeted manufacturing overhead costs for the year 2072 Overhead Cost Pools Purchasing Production (cutting, maling, filthing) Setting up machines Inspecting Utilities Total budgeted overhead costs Amount 5230.000 5550, DCO 5150.000 $120,000 $220.000 $1.270.000 For the last three years, the company has been charging overhead to products on the basis of machine hours. 130,000 machine hours have been budgeted for the year 2022. Allison has recently directed Sandra Chamberlain, her Finance Manager, to implement an activity based costing system. At Sandra's request, the company's accountant and production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools Overhead Costs Purchasing Production (cutting, milling, finishing) Setting up machines Inspecting Utilities Activity Cost Drivers Number of orders Direct labour hours Number of setups Number of inspections Square metres occupied Total Drives 700 50.000 4.000 5.000 50,000 During this month, the company received an order for 80 doors from a housing development contractor. The accountant prepares cost estimates for producing the 80 doors so that Sandra can submit a contract price per door to the contractor. The following data for the production of 30 doors is accumulated Direct materials Direct labour Machine hours Direct labour hours Number of purchase orders Number of machine setups Number of inspections Number of square metres occupied $120,000 $150.000 11,000 16.000 BO 40 720 5,000 Required: (20 marks) I Calculate the predetermined overhead rate using traditional lob) costing with machine hours as the basis 4 marka 2. Calculate the manufacturing cost per door under traditional (ob) costing 6 marts 3. Calculate the manufacturing cost per door under the proposed activity-based costing 6 marks 4. What would you recommend to management? Provide the reasoning for your recommendation 4 marks