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5-26 Activity based costing, manufacturing Decorative Doors, Inc. produces types of rior and exterior. The company's simple contingwystem has two direct contegories materials and to

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5-26 Activity based costing, manufacturing Decorative Doors, Inc. produces types of rior and exterior. The company's simple contingwystem has two direct contegories materials and to and one indirect cost pool. The simple conting system allocate indirect costs on the basis of the production channel ning the indirect cooltween they hours. Recently, the owners al Decorative Doors have been concerned about a decine in the market share for their interior doors, the selle Information related to Decoratie Doon production for Dear colected the song the the most recent year follow Act Ayo Atiyer Prati . Potato Interior Exterior M Units solt 2200 100 Machine Selling price Assay Machines Derect material cost perut $ 45 Ispection $10 Dect manufacturing labor cost per hour 150 235 Marting with Direct matching labor-hours per unit 40 Productions 1 Calate cost of our door 72 16 donde 2 Call the cost of Material moves 45 155 dan 1 Compare the Machines 5.500 4.900 systems for in the two Machine-hours 150 Honight Decor Door, then Number of inspections 3200 11 The owners have heart of other companies in the industry that we wanted coming system and are curious how an ABC system would affect the product conting decisions. After any 5-26 Activity based costing, manufacturing Decorative Doors, Inc, produces two types of door inte rior and exterior. The company's simple coating watem has two Grect cost categories materials and her one indirect.cost pool. The simple conting wystem allocate direct costs on the basis of machine hours. Recently, the owners of Decorative Doors have been concerned about decline in the market share for their interior doors, their biggest selet. Information related to Decorative Doors production for the most recent year follows Units sold Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor hours per unit Production run Material moves Machine setup Machine hours Number of inspection Interior 2200 $123 $ 30 $16 150 40 12 45 3.500 250 Exterior 1.000 $ 200 $ $ 18 235 05 198 193 4500 10 the indirect cost pool for Decorate the production the antingen Deco Doors colected the following used to the indirect contact Aality Activity Col Activitat Drew Production schede 0.00 Produtos $15.000 Mate Mic . Machine Anth 0.000 Machine Inspection Number ons Marling determined to be of the same 1 Calculate the cost of food for the 2 Calcune cost of our inn dong 1 Compare the doors 2. Why is the place wir in the contender How Decorate Door so it can to de cartoons The owners have heard of other companies in the industry that are now using an activity based on system and are curious how an ABC wystem would affect their product contingenterna

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