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Hasr Home Run Come-On-In ABC Home Run Practice! Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard Come-On-In compiled the following data products:

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Hasr Home Run Come-On-In ABC Home Run Practice! Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard Come-On-In compiled the following data products: Standard Deluxe Estimated unit production 2,400 units 800 units Direct material costs/unit 15.00 $40.00 Direct labor costs/unit $40.00 50.00 Direct labor hours/unit 2 hours 1.5 hours The company estimated it would incur $96,000 in manufacturing overhead costs during current period. Overhead currently is appland to the products on the basis of direct labor hours. Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuas to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC informatic for 2010: Activity Cost Driver Cost Total Standard Deluxe Machine Setups of setups $10,000 500 200 300 Machine related of machine hours $56,000 5,600 2,500 3,100 Packing of shipments $30,000 100 40 60 Total Overhead Costs $96,000 Required: (To solve this problem you must use Excel and upload in the course Blackboard) Direct material costs/unit 15.00 $40.00 Direct labor costs/unit $40.00 50.00 Direct labor hours/unit 2 hours 1.5 hours The company estimated it would incur $96,000 in manufacturing overhead costs during current period. Overhead currently is app to the products on the basis of direct labor hours. Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC informatio for 2010: Activity Cost Driver Cost Total Standard Deluxe Machine Setups of setups $10,000 500 200 300 Machine-related of machine hours $56,000 5,600 2,500 3,100 Packing of shipments $30,000 100 40 60 Total Overhead Costs $96,000 Required: (To solve this problem you must use Excel and upload in the course Blackboard) a. Using the current system, compute predetermined overhead rate and unit product cost of each type of door. b. Using ABC, compute ABC rate and unit product cost of each type of door c. Explain why there are difference in unit product costs under current system and under activity based costing

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