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Decorative Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system has two direct-cost calegories (materials and laboe) 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 beon concemed 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: (Click the icon to view the production data.) (Click the icon to viow additional information.) Read the requirements., Requirement 1. Calculate the cost of an interior door and an exterior door under the oxisting simple costing system. Before calculating the cost of an interior and exterior door, begin by calculating the overtead rate under the simple costing system. First select the formula. then enter the annlicable amounts and calculate the rate. (Round your answor to the noarest cont. Abbreviations used: bgt. = budgeted, oty = quantify) Data table More info The cwnecs have heard of other companies in the industry that are now waing an activity-based costing system and we curioss how ant ABC syutem weuld athect their peatud iderafy six acthites as generabing ndrect cests production scheduling. materiat handing. machine setup; assectily, inapection and maketing Deocrative Doons oolectied he folowing ata related to the indirect cest activile. Rquirements 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. 3. Compare the costs of the dotis in requirements 1 and 2 . Why do the simple and activity-based costing systems differ in the cost of an interior door and an exterior door? 4. How might Decorative Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? Bgt. total costs in indirect cost pool Bgt. total direct costs Bgt. total direct labor costs Bgt. total direct material costs Bgt. total qty of cost allocation base Total number of units sold