hour $16 7. Open 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 Open Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Open Doors production for the most recent year follows: Interior Exterior Units sold 3,200 1.800 Selling price $ 125 $ 200 Direct material cost per unit $ 30 $ 45 Direct manufacturing labor cost per hour $ 16 Direct manufacturing labor-hours per unit 1.50 2.25 Production runs 40 Material moves 72 168 Machine setups 45 155 Machine-hours 4,500 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 Open Doors, four activities were identified as generating indirect costs: production scheduling, material handling, machine setup and assembly. Open Doors collected the following data related to the indirect cost activities: Activity Activity Cost Activity Cost Driver Production scheduling $95.000 Production runs Material handling $45,000 Material moves Machine setup $25,000 Machine setups Assembly $60,000 Machine-hours 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system(Plant-Wide OH Rate)(1pt) 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system (3pts) 5,500