Dandy Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system has two direct-cost categories (materials and labor) and one indirect-cost pool. The simple costing system allocates indirect costs on the basis of machine-hours. Recently, the owners of Dandy Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Dandy Doors production for the most recent year follows: 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 calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviations used: bgt. = budgeted, qty = quantity.) Now calculate the cost of an interior door and an exterior door under the existing simple costing system. Start by calculating total costs and then calculate the cost per unit for each product. (Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) Now calculate the cost per unit for each product under the simple costing system. (Round your answers to the nearest cent.) Requirement 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. Begin by calculating the ABC allocation rate for each activity. First select the formula, then enter the applicable amounts and calculate the rates. (Round your answers to the nearest cent. Ahhraviatinns usad. Rat = Rudnatar mach = machina mat = matarial nrond = nronluction sch = scheduling, qty. = quantity.) Now calculate the cost of an interior door and an exterior door under an activity-based costing system. (Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) Dandy Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system has two direct-cost categories (materials and labor) and one indirect-cost pool. The sim costing system allocates indirect costs on the basis of machine-hours. Recently, the owners of Dandy Doors have been concerned about a decline in the market share for their interior doors, usual their biggest seller. Information related to Dandy Doors production for the most recent year follows: Now calculate the cost of an interior door and an exterior door under an activity-based costing system. (Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) Now calculate the cost per unit for each product under ABC. (Round your answers to the nearest cent.) Requirement 3. Compare the costs of the doors in requirements 1 and 2 . Why do the simple and activity-based costing systems differ in the cost of an interior door and an exterior door? Relative to the ABC system, the simple costing system in_exterior doors and inters. Under the simple costing system, the amount of overhead allocated to the interior doors. The ABC study reveals that each exterior door requires . This is reflected in the allocated to exterior doors in the ABC system. Requirement 4. How might Dandy Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? (Select all choices More info Data table The owners have heard of other companies in the industry that are now using an activity-based costing system and are curious how an ABC system would affect their product costing decisions. After analyzing the indirect-cost pool for Dandy Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Dandy Doors collected the following data related to the indirect-cost activities: Dandy Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system has two direct-cost categories (materials and labor) and one indirect-cost pool. The simple costing system allocates indirect costs on the basis of machine-hours. Recently, the owners of Dandy Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Dandy Doors production for the most recent year follows: 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 calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviations used: bgt. = budgeted, qty = quantity.) Now calculate the cost of an interior door and an exterior door under the existing simple costing system. Start by calculating total costs and then calculate the cost per unit for each product. (Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.) Now calculate the cost per unit for each product under the simple costing system. (Round your answers to the nearest cent.) Requirement 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. Begin by calculating the ABC allocation rate for each activity. First select the formula, then enter the applicable amounts and calculate the rates. (Round your answers to the nearest cent. Ahhraviatinns usad. Rat = Rudnatar mach = machina mat = matarial nrond = nronluction sch = scheduling, qty. = quantity.) Now calculate the cost of an interior door and an exterior door under an activity-based costing system. (Round interim calculations to the nearest cent and your final answers to the nearest whole dollar.)
