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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

58

82

Direct manufacturing labor cost per unit

36

36

Production Runs

46

92

Machine Setups

60

140

machine hours

6000

5000

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

Activity Cost 200,000

Activity cost driver

Production Runs

Machine setup

60,000

Machine Setups

Assembly

100,000

Machine Hours

Calculate the cost of an interior door and an exterior door under an activity-based costing system.

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