Decorative 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 Decorative Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Decorative Doors production for the most recent year follows: Units sold Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups Machine-hours Number of inspections Interior 3,200 $ 125 S 30 $ 16 1.50 40 72 45 5,500 250 Exterior 1,800 $ 200 $ 45 S 16 2.25 85 168 155 4,500 150 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 six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly. inspection, and marketing. Decorative Doors collected the following data related to the indirect- cost activities: Activity Activity Cost Activity Cost Driver Production scheduling 595,000 Production runs Material handling $45,000 Material moves Machine setup $25,000 Machine setups Assembly $60,000 Machine-hours Inspection S 8,000 Number of inspections Marketing costs were determined to be 5% of the sales revenue for each type of door 1) Calculate the cost of an interior door and an exterior door under an activity-based costing system