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Q1) (15 pts) Fancy Doors, Inc., produces two types of doors, interior and exterior. Recently, the owners of Fancy Doors have decided to use activity
Q1) (15 pts) Fancy Doors, Inc., produces two types of doors, interior and exterior. Recently, the owners of Fancy Doors have decided to use activity based costing. Information related to Fancy Doors production for the most recent year follows: Interior Exterior Unit Sold 3000 2000 Direct material cost per unit 82 Direct manufacturing labor cost per unit 36 Production Runs 46 92 Machine Setups 60 140 machine hours 6000 5000 58 36 After analyzing the indirect cost pool for Fancy Doors, the owners identify three activities as generating indirect costs: production scheduling, machine setup, and assembly. Fancy Doors collected the following data related to the indirect cost activities: Activity Production Scheduling Machine setup Assembly Activity Cost 200,000 60,000 100,000 Activity cost driver Production Runs Machine Setups Machine Hours Calculate the cost of an interior door and an exterior door under an activity-based costing system
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