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Q 7 . Fancy Doors, Inc., produces two types of doors, interior and exterior. The company's simple costing system has two direct cost categories (

Q7. 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 based on machine-hours. Recently, the owners of Fancy Doors have been concerned about a decline in the market share for one of their products, usually their bigger seller. Information related to Fancy Doors production for the most recent year follows:
\table[[,Interior,Exterior],[Units sold,3,200,1,800],[Selling price,$250,$400
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