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Clever Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system hes two direct cost categories (materials and labor) and
Clever Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system hes two direct cost categories (materials and labor) and one indirect cost pool. The simple costing system allocates indirect costs on the basis of ma?ne-l urs ocen y, he owners of Clever Doors hav been conce ned abou eclme n h : "erke sle c or h?" n o r doors usual then b ges s r in Uima on rc aled cvcr oo s produc n or hern str cont car fol ws ElB (Click the icon to view the production data.) (Click the icon to view additional information.) Read uieenls Requirement 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. Before calculating the cost of an interior and exterior door, begin by cakulating the overhead rate under the simple costing system.First select the formula, then enter the acplicable amounts and calculate the rate. (Round your aiswer to the nearest cent Abbreviations used bgtbudgcted, qty quantity) Rudgeted overhead rate More Info Simple costing system The ownershav heard of other companics in the industry that are now using an activity-based costing system and are cunous how an AHC system would attect their product costing decisions. After analyzing the indirect cost pool for Clever Doors, the owners identify six activit" s as gerKraling ndi' uct uusis p'oduclion scheduling 'rialenal haridling,machine setup, assembly, inspection, and marketing Clever cars collected the tollowing data related to the indirect cost activities: Exterior ,300 240 Unils sold Selling price Direct material cost per unit Direct manufacturing labor cost per hourS Direct manufacturing labor-hours per unit Production runs Material moves Machine setups 0,200 160S Activity Production scheduling Malerial andling Machirne selup Activity Cost Activity Cost Driver 5 S 12 2.40 65 67,150 Production runs 40,940 Malerial moves 25,830 Machine selups 12 S 1.50 S 30 DIX Machine-holurs S 14,400 Number of inspections 150 4 500 110 Marketing costs were determined to be 3% or lhe sales revenue ror oath, 1??? of door 5 50 Number of inspections 220 Print Done
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