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Durable Doors, Inc, produces two types of doors, interior and exterior. The company' simplo costing systum has two diroct-cost calogories (materials and labor) and one

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Durable Doors, Inc, produces two types of doors, interior and exterior. The company'" simplo costing systum has two diroct-cost calogories (materials and labor) and one indirect.cost pool. The simple costing system alkeates indirect costs on the basis of machine-hours. Flocontly, the ownors of Durable Doors have been concarmed about a docine in the market shase for their intorior doons, usually thrir brggest sollec Information rolated to Durablo Doors production for the mostrecont year follows: It (Cick the icon to view the production data) (i) (Cick the icon to vhow adidionalinformation) Data table More info 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 Durable Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Durable Doors collected the following data related to the indirect-cost activities: Marketing costs were determined to be 2% of the sales revenue for each type of door. Requitement 1. Calculate the cost of an intonor door and an extecior door under the existing simple costing system. Before caiculating the cost of an interior and exterior dooc, begin by calculating the overhend rate under the simple costing systom First select the formula, then enter the applicable amounts and calculate the rate. (Round your answor to the nearest cont. Abbreviabons used: bgt: = budgeied, efy = quantif) Now calculate the cost of an interior door and an exderior door under the existing simplo costing systern. Start by calculating total costs and then calculate the oost per unit for each product (Round intenim calculations to the nearest cent and your firial answors fo the neacest whole dollar) Requirement 2. Cakculate the oost of an inlenor door and an extenor door under an activity-based oosting bystem Bopin by calculating the ABC allocation rate for oach activily. Fitst select the formula, than enter the applicable amounts and calculate the rates. (Round your anowers to the noaront oont, Abbreviations isood: Bgt = Budgetod, mach. = machine, mat w materiat, prod. = production, sch, = scheduling, cty = Giantity. Now calculate thb cost of an intenor door and an extorior door under an actwity-based costing system. (Round interim caiculations to the noarest cent and your firtal answers to the natest whiche doliari)

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