Decor Deus, Inc. produces two types of cours, interior and exter. The company's simple casting system has two direct cost call and labor and one indirect.com pool. The simple costing system allocate indirect costs on the basis of the hours Recently, the owners of Decorative Des have been cocemed about a decine in the market share for their interior doorstelle Information related to Decorative Doors production for the most Recent you follows 3.2006 1315 30S 165 1800 200 Units sold Spice 15 Direct materia com per 5 Direct manachuringinbocco DEOS Direct manaungabor hours per hoduction Maramures 10 Machine seus 11 Machine hours 12 bronsepcions 72 45 16 12 85 1 155 4500 150 3.500 250 The one have head of other comparts in the industry that are now using an activity and costing system and te cunou how an ABC systems weddict thie predict costing decisions. Antes walang the ninet-cost pool for Decoratie Doon, they activities as gmerting indirect cont production scheduling matinding machine stap, ambly, mapection and in Decente Doces collected the following date related to the doct.cout 14 activities 15 16 ACTIVE ACCOM Cost Driver 17 Production scheduling 95,000 Production luns 10 MINUTE 45 000 Material Moves Machine Setup $ 25.000 Machine Setups 20 Assembley S 60000 Machine Hours inspection 5 3.000 Nebo inspections Marges determined to be of the sales revenfor each type of de 2 25 Calculate the cost of an interior en vinder under the existing simple conting system, 26 221 Total Indirect costs 20 Tonal Machine Ho Costite 10 warrior 1 Direct Mais Dettate 1 Old 4 Total 15 Comer 36 Calesise the cast of indoor andere door under an activity based cottages 10 Activity Arty Core Cast Driver Cest Driver Allactin Rane reducen Schen 5 6.000tion S 1000 MM Mathie Setup 5 21000 Machine Sets 41 bier S 0 000 MAH 5 8.000 bero handon 41 Mars or Exter 47 Du Materials 49 Dube 50 OH Allocare 51 Total Coats 52 CPU Care the other is requirements 1 2. Why do the simple and the differ is the cast of terror dort 15 Decorative Doors, Inc., produces two types of doors, interior and extenot. The company's sumplo costing system has two direct-cost categories (materials and labot) and one indirect-cost pool. The sample costung system allocates indirect costs on the basis of machine-hours. Recently, the owners of Decorative Doors have been concemed about 2 decline in the market share for their intenor doors, usually the biggest seller. Information related to Decorative Doors production for the most recent year follows: Interior Exterior Units Sold 3.2005 1.800 Selling price s 1255 200 5 Direct material cost per unit $ 30$ 45 5 Direct manufacturing labor cost per hours 15 5 16 7. Direct manufacturing labor hours per un 2 2 8 Production tuns 40 85 9. Material moves 22 168 10 Machine setups 45 155 11 Machine hours 5.500 4,500 12. Number of insections 250 150 13 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 Decorative Doors, the owners identify nos activities as generating indirect costs production scheduling, material 14 handling, machine stup, assembly, inspection and marketing Decorative Doors collected the following data related to the indirect-cost activities: 15 16 Adi Activity Cost Activity Cost Driver 7 throduction scheduling 5 95.000 Productions 15 Material Handling 5 45,000 Materiat Moves 10 Machine Setup $ 25 000 Machine Setups 20 Assembly 5 60 000 Machine Hours 21 Inspection 5 1.000 mer of Inspections 22 29 Making costs were determined to be of the sales revenue for each type of door 24 Calculate the cost of interior door and interior door under the existing simple contingum I Total indret cons 2 Total Machine Hours 2 Indirect Cost 30 Interior Ex 11 Direct Matenats Se Direct Labor OH Allocated 14 Total Costs 35 content 15 Calestate the cost of an interior doorsteer door under an hity based routing 18 Activity Activity Cou Cost Driver Con Dier ou Alle Kate 40 Production scheduling 5 95.000oduction Buns 41 Males Hardin 5 15000 Material MOVES Machine up 5 35 000 Machine Seos s 60.000 Machine Hours 8000 Number of inspection 45 Martin 45 47 Interior ter 45 Direct Materials 42 Dor 30 Ort Alle Stotal costs 52. Cette Uns 3 4 Cumpare the cast af the doors is requirerats and 2. Why do the sample and this systems differ in the cast of an interior and narrar de? 51 Decor Deus, Inc. produces two types of cours, interior and exter. The company's simple casting system has two direct cost call and labor and one indirect.com pool. The simple costing system allocate indirect costs on the basis of the hours Recently, the owners of Decorative Des have been cocemed about a decine in the market share for their interior doorstelle Information related to Decorative Doors production for the most Recent you follows 3.2006 1315 30S 165 1800 200 Units sold Spice 15 Direct materia com per 5 Direct manachuringinbocco DEOS Direct manaungabor hours per hoduction Maramures 10 Machine seus 11 Machine hours 12 bronsepcions 72 45 16 12 85 1 155 4500 150 3.500 250 The one have head of other comparts in the industry that are now using an activity and costing system and te cunou how an ABC systems weddict thie predict costing decisions. Antes walang the ninet-cost pool for Decoratie Doon, they activities as gmerting indirect cont production scheduling matinding machine stap, ambly, mapection and in Decente Doces collected the following date related to the doct.cout 14 activities 15 16 ACTIVE ACCOM Cost Driver 17 Production scheduling 95,000 Production luns 10 MINUTE 45 000 Material Moves Machine Setup $ 25.000 Machine Setups 20 Assembley S 60000 Machine Hours inspection 5 3.000 Nebo inspections Marges determined to be of the sales revenfor each type of de 2 25 Calculate the cost of an interior en vinder under the existing simple conting system, 26 221 Total Indirect costs 20 Tonal Machine Ho Costite 10 warrior 1 Direct Mais Dettate 1 Old 4 Total 15 Comer 36 Calesise the cast of indoor andere door under an activity based cottages 10 Activity Arty Core Cast Driver Cest Driver Allactin Rane reducen Schen 5 6.000tion S 1000 MM Mathie Setup 5 21000 Machine Sets 41 bier S 0 000 MAH 5 8.000 bero handon 41 Mars or Exter 47 Du Materials 49 Dube 50 OH Allocare 51 Total Coats 52 CPU Care the other is requirements 1 2. Why do the simple and the differ is the cast of terror dort 15 Decorative Doors, Inc., produces two types of doors, interior and extenot. The company's sumplo costing system has two direct-cost categories (materials and labot) and one indirect-cost pool. The sample costung system allocates indirect costs on the basis of machine-hours. Recently, the owners of Decorative Doors have been concemed about 2 decline in the market share for their intenor doors, usually the biggest seller. Information related to Decorative Doors production for the most recent year follows: Interior Exterior Units Sold 3.2005 1.800 Selling price s 1255 200 5 Direct material cost per unit $ 30$ 45 5 Direct manufacturing labor cost per hours 15 5 16 7. Direct manufacturing labor hours per un 2 2 8 Production tuns 40 85 9. Material moves 22 168 10 Machine setups 45 155 11 Machine hours 5.500 4,500 12. Number of insections 250 150 13 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 Decorative Doors, the owners identify nos activities as generating indirect costs production scheduling, material 14 handling, machine stup, assembly, inspection and marketing Decorative Doors collected the following data related to the indirect-cost activities: 15 16 Adi Activity Cost Activity Cost Driver 7 throduction scheduling 5 95.000 Productions 15 Material Handling 5 45,000 Materiat Moves 10 Machine Setup $ 25 000 Machine Setups 20 Assembly 5 60 000 Machine Hours 21 Inspection 5 1.000 mer of Inspections 22 29 Making costs were determined to be of the sales revenue for each type of door 24 Calculate the cost of interior door and interior door under the existing simple contingum I Total indret cons 2 Total Machine Hours 2 Indirect Cost 30 Interior Ex 11 Direct Matenats Se Direct Labor OH Allocated 14 Total Costs 35 content 15 Calestate the cost of an interior doorsteer door under an hity based routing 18 Activity Activity Cou Cost Driver Con Dier ou Alle Kate 40 Production scheduling 5 95.000oduction Buns 41 Males Hardin 5 15000 Material MOVES Machine up 5 35 000 Machine Seos s 60.000 Machine Hours 8000 Number of inspection 45 Martin 45 47 Interior ter 45 Direct Materials 42 Dor 30 Ort Alle Stotal costs 52. Cette Uns 3 4 Cumpare the cast af the doors is requirerats and 2. Why do the sample and this systems differ in the cast of an interior and narrar de? 51