How to calculate budgeted. total costs in indirect cost pool $ 258010 ? Please show me the formula.
2. Delightful 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 Delightful Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Delightful Doors production for the most recent year follows: 3(Click the icon to view the production data.) (Click the icon to view additional information. Interior Exterior 3.000 1,600 140 $ 240 $ 30 $ 55 $ 19 $ 19 1.40 2.45 Units sold Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups Machine-hours Number of inspections 30 65 70 160 30 130 4,000 6,000 220 140 4: 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 Delightful Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Delightful Doors collected the following data related to the indirect cost activities: Activity Activity Cost Activity Cost Driver Production scheduling $ 71,250 Production runs Material handling $ 42,320 Material moves Machine setup $ 19,520 Machine setups Assembly $ 90,000 Machine-hours Inspection $ 10,800 Number of inspections Marketing costs were determined to be 3% of the sales revenue for each type of door. 5: Requirements 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 doors in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of an interior and exterior door? 4. How might Delightful Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? 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 (1) (2) Simple costing system (3) Read the requirements. Bgt total costs in indirect cost pool 258,010 Bgt. total qty of cost allocation base 10,000 Budgeted overhead rate Simple costing system $ 25,80 per machine-hour 2. Delightful 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 Delightful Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Delightful Doors production for the most recent year follows: 3(Click the icon to view the production data.) (Click the icon to view additional information. Interior Exterior 3.000 1,600 140 $ 240 $ 30 $ 55 $ 19 $ 19 1.40 2.45 Units sold Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups Machine-hours Number of inspections 30 65 70 160 30 130 4,000 6,000 220 140 4: 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 Delightful Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Delightful Doors collected the following data related to the indirect cost activities: Activity Activity Cost Activity Cost Driver Production scheduling $ 71,250 Production runs Material handling $ 42,320 Material moves Machine setup $ 19,520 Machine setups Assembly $ 90,000 Machine-hours Inspection $ 10,800 Number of inspections Marketing costs were determined to be 3% of the sales revenue for each type of door. 5: Requirements 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 doors in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of an interior and exterior door? 4. How might Delightful Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? 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 (1) (2) Simple costing system (3) Read the requirements. Bgt total costs in indirect cost pool 258,010 Bgt. total qty of cost allocation base 10,000 Budgeted overhead rate Simple costing system $ 25,80 per machine-hour
