Question 2 Doba Doors, Inc.paces two types of doors, interer and exterior. The company's simple costing system has two dict cost categories (materials and labor) and indirect cost pool. The simple costing system allocates indirect costs on the basis of machine-hours Recently, the owners of Doha Doors have been conced about decline in the market share for dolly their biggest seller. Information to Doba Doces production for the mast year fol Selling Price Die mal cost per Interior Exterior 5,400 $255 3470 595 $130 Difacturing labor cost per hour 315 315 Dieet mufacturing labor-pr Productio 2 50 115 93 200 45 175 11,700 415 6,300 Number of inspection The owners have heard of other companies in the industry that are now using an activity-based costing system and are cursus bow an ABC system would affect their product costing decisions. After analyzing the indirect con pool for Doha Doors, the owens deity is activities as generating induct cost production scheduling material handling machine setup, assembly, inspection and marketing. Dos Doors collected data related to the indirect cost activities as displayed in the table below Activity Production scheduling Material funding Activity Cont 118,000 55.040 Machine stap 36.700 Ably 90,000 Inspection 20.520 Marketing costs were determined to be 2% of the Mar leven for ach type of door Tul Requirement 1) Compute the overhead allocation rate Ohad allocat TMC 1.) Calculate the cost of an interior door and an exterior door under the exiting simple costing system. TMCost Con per Us Interior Exterior 3.Select an allocation base (cast driver) for each activity and calculate the activity rate per unit for each activity. Activity Activity Cont Cost Driver Quit Cost Driver Activity Rate/Unit 115.000 Material handling 55040 36,700 Auserably 90,000 Inspection 20.530 Marketing costs were determined to be 2% of the lve for a type of door 4) Calculate the cost of as interior door and an exterior door under an activity-based costing s Taal Maaning Cost Cost per Unit Exterior 5) Compare the costs of the doors under a simple costing system and an activity-based costing system. Why do the costs differ under each of these ystem for an interior deer and an exteriorder?