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Question 2: 4.5 Marks) CompanPages Bahrain Manufacturing produces two types of entry doors: Deluxe and Standard. The comppay has a single indirect cost pool (manufacturing

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Question 2: 4.5 Marks) CompanPages Bahrain Manufacturing produces two types of entry doors: Deluxe and Standard. The comppay has a single indirect cost pool (manufacturing overhead allocated on the basis of direct manufacturing labor cost). The indirect cost allocation rate has been 400% of direct labor cost. For 2020, Bahrain Companumpled the following data for the two produc Page 4 Page 7 Sales units Delure $50,000 Standard $400.000 Selling price per unit Direct material costs per unit Direct manufacturing labor per unit $70.00 $30.00 $5.00 $60.00 $20.00 $6.00 Recently, a team with members from design , manufacturing and accounting used an ABC approach to refine its job costing system. The two direct opat categories were retained. The team decided to replace the single indirect cost pool with three indirect cost pools that represent activity areas at the plant. The team obtained the following information: Activity Cost driver Cost Total cost Actual usage of Actual usage of cost driver units cost driver units driver units Deluxe Standard No. of setups $500,000 500 setups Setups 400 setups 100 setups Number of Machine hours 600 MHS 300 MHs Machine Plage 2 Paygo 5 PageMag No. of shipments $5,000 Packing 250 shipments 50 shipments 200 shipments Required: 1) Using the current traditional costing system, what is the estimated: a) total cost of manufacturing one unit pf Deluxe entry door? ( 5 Mark) b) profit per unit of Standard? (.5 Markt) 2) Using the activity-based costing data presented above, compute the revised manufacturing overhead costs per unit of Deluxe entry door. (3.5 Marks)

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