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Darling 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
Darling 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 Darling Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Darling Doors production for the most recent year follows: (Click the icon to view additional information.) (Click the icon to view the production data.) Read the requirements. Data table Interior Exterior Units sold Selling price 3,100 1,700 $ 160 $ 235 Direct material cost per unit $ 45 $ 25 80 Direct manufacturing labor cost per hour $ 12 $ 12 Direct manufacturing labor-hours per unit 1.50 2.45 Production runs 30 65 Material moves 70 160 Machine setups 30 145 Machine-hours 5,500 4,500 Number of inspections 250 170 Print Done
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