Managerial accounting

3. Come-On-In Manufacturing The assignment basis for manufacturing support costs For 20X5, Come-On-Inng support costs has been direct labor dollars. In compiled the following data for the two products: ment basis ing produces two types of entry doors: Deluxe and Standard DeluxeStandard 50,000 Sales (in units) 400,000 Sales price per unit $650.00 $180.00 $475.00 $130.00 Direct material and labor costs per unit Manufacturing support costs per unit $ 80.00 $120.00 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 promotion strategy for the next sales campaign. She obtained the following ABC information for 20X5 Activity Setups Machino-related of machine hours $44,000,000 300,000 300,000 Packing Cost Driver of setups Cost $ 500,000 400 Staadard 100 Delaxe of shipmcats 5,000,000 50,000 200,000 Required a. Using the current system, what is the estimated 1. total cost of manufacturing one unit for each type of door? profit per unit for cach type of door? 2. Using the current system, estimated manufacturing overhead costs per unit are less for the deluxe door ($80 per unit) than the standard door ($120 per unit). What is a likely explanation for this? b. C. Review the machine-related costs above. What is a likely explanation for why total machining hours for the deluxe doors (300,000 hours) are the same as for the standard doors (300,000 hours)? Using the activity-based costing data presented above, ii. comput d. compute the cost-driver rate for cach overhead activity e the revised manufacturing overhead cost per unit for each type of entry door. revised total cost to manufacture one unit of each type of entry door. Is the deluxe door as profitable as the original data estimated? Why or e. not? f. What considerations need to be cxamined when strategy