E5-26 (similar to) Question Help Clever 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 Clever Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Clever Doors production for the most recent year follows: (Click the icon to view the production data.) (Click the icon to view additional information.) Read the requirements 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.) Budgeted overhead rate Data Table Bgt. total costs in indirect cost pool Bgt, total qty of cost allocation base Simple costing system 9650 10,000 0.965 per machine-hour = Interior Exterior Units sold 3,000 1,600 $ 130 $ 220 $ 50 $ 70 Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs $ 10 $ 10 1.50 2.35 45 95 Material moves 75 165 Choose from any list or enter any number in the input fields and then click Check Answer. 35 130 Machine setups Machine-hours Number of inspections 6,500 3,500 14 parts Clear All 250 170 Answer remaining E5-26 (similar to) Question Help Clever 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 Clever Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Clever Doors production for the most recent year follows: (Click the icon to view the production data.) (Click the icon to view additional information.) Read the requirements 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.) Budgeted overhead rate Data Table Bgt. total costs in indirect cost pool Bgt, total qty of cost allocation base Simple costing system 9650 10,000 0.965 per machine-hour = Interior Exterior Units sold 3,000 1,600 $ 130 $ 220 $ 50 $ 70 Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs $ 10 $ 10 1.50 2.35 45 95 Material moves 75 165 Choose from any list or enter any number in the input fields and then click Check Answer. 35 130 Machine setups Machine-hours Number of inspections 6,500 3,500 14 parts Clear All 250 170 Answer remaining
