Please use the format on the right with calculations. Thank you.

Fancy 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 Fancy Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Fancy Doors production for the most recent year follows: Overhead rate Exterior Interior Exterior Interior 3,200 $250 $60 $32 1.50 1,800 $400 $90 $32 Simple Costing System Direct materials Direct manufacturing labor Indirect cost allocated to each job Total costs 2.25 $ - $ . 7 Units sold Selling price 9 Direct material cost per unit 10 Direct manufacturing labor cost 11 Direct manufacturing labor-hou 12 Production runs 13 Material moves 14 Machine setups 15 Machine-hours 16 Number of inspections 40 85 168 Total cost per unit 45 5,500 250 155 4,500 150 Allocation rates Production Scheduling Material handling 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 marketing. Fancy Doors collected the following data related to the indirect cost activities: Machine setup Assembly Inspection Interior Exterior 20 Activity 21 Production scheduling 22 Material handling 23 Machine setup 24 Assembly 25 Inspection Activity Cost $190,000 $90,000 $50,000 $120,000 $16,000 Activity Cost Driver Production runs Material moves Machine setups Machine-hours Number of inspections Activity-Based Costing System Direct materials Direct manufacturing labor Indirect costs allocated: Product scheduling Material handling Machine setup Assembly Inspection Marketing 27 Marketing costs were determined to be 3% of the sales revenue for each type of door. 28 29 REQUIREMENTS: 30 Use cell references and formulas where possible in order to receive full credit. 31 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. Calculate the overhead rate under the simple costing system. Then calculate the cost of an interior door and an exterior door. 32 Finally calculate the cost per unit for each product. 33 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. Calculate the activity-based costing system allocation rates for each activity. Then calculate the cost of an interior door and an 34 exterior door. Finally calculate the cost per unit for each product. Total costs Total cost per unit