I Need a little help. Please!!
related to Fancy 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. (Round your answer to the nearest cent. Abbreviations used: bgt. = budgeted, qty = quantity.) Data table 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 Fancy Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and to the indirect-cost activities: the nearest cent and your final answers to the nearest whole dollar.) low calculate the cost per unit for each product under the simple costing system. (Round your answers to the nearest cent.) Requirement 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. Budgeted, mach. = machine, mat. = material, prod. = production, sch. = scheduling, qty. = quantity.) Now calculate the cost per unit for each product under ABC. (Round your answers to the nearest cent.) equirement 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 door and an exterior door? A. Fancy Doors, Inc. can use the information revealed by the ABC system to change its pricing based on the ABC costs. B. Fancy Doors should consider increasing the price of its exterior doors, depending on the competition it faces in this market. C. Fancy Doors, Inc. should consider decreasing the price of its interior doors to be more competitive. D. Fancy Doors, Inc. should consider decreasing the price of its exerior doors to be more competitive. E. Fancy Doors, Inc. should consider increasing the price of its interior doors depending on the competition it faces in this market. consume fewer indirect resources, or find a way to reduce the per-unit-cost-driver cost of some of those indirect resources
