Come-On-In ABC Home Run Practice! Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard Come-On-In compiled the following data products: H&Home Run Estimated unit production Direct material costs/unit Standard 2,400 units Deluxe 800 units 15.00 $40.00 $40.00 4 2 hours 50.00 1.5 hours Direct labor costs/unit Direct labor hours/unit The company estimated it would incur $96,000 in manufacturing overhead costs during current period. Overhead currently is applied to the products on the basis of direct labor hours. Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an 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 2010: Activity Cost Driver of setups Machine-related of machine hours Machine Setups Packing of shipments Total Overhead Costs Cost Total $10,000 500 $56,000 5,600 Standard 200 Deluxe 300 2,500 3,100 $30,000 100 40 60 $96,000 Required: (To solve this problem you must use Excel and upload in the course Blackboard) a. Using the current system, compute predetermined overhead rate and unit product cost of each type of door. b. Using ABC, compute ABC rate and unit product cost of each type of door c. Explain why there are difference in unit product costs under current system and under activity based costing