Question Help Decorative Doors, Inc., produces two types of door, Interior and exterior. The company's simple costing system has two direct cont categories (materials and labor) and one indirect cost pool. The simple conting system allocates indirect costs on the basis of machine hours. Recently, the owners of Decorative Doors have been concomed about a decline in the market share for their interior doors, usually their boot seller Information related to Decorative Doors production for the most recent year follows (Click the icon to view the production data.) (Click the icon to view additional information) Read the rements Requirement 1. Calculate the cost of an interior door and an exterior door under the existing simple cooling system. Before calculating the cost of an interior and exterior door begin by calculating the overhead rate under the simple costing system. First select the formula, then enter the applicable amounts and calculate the role (Round your answer to the nearest cent. Abbreviations used: bgt budgeted oy quantity) Budgeted overhead rate Simple costing system Now calculate the cost of an interior door and an exterior door under the existing simple costing system Start by calculating total costs and then calculate the cost per unit for each product. (Round interim calculations to the nearestent and your final answers to the nearest whole dollar) Interior Exterior Simple costing system Direct materials cost Direct manufacturing labor cost Indirect cost allocated Total costs Choose from any list or enter any number in the input fields and then continue to the next question Save for later Question Help Decorative Doors, Ino, produces two types of doors, Interior and exterior. The company's simple conting system has two direct cont categories (materials and labor) and one indirect cost pool. The simple costing system allocates Indirect costs on the basis of machine hours. Recently, the owners of Decorative Doors have been concomed about a dedine in the market share for their interior doors, usually their biggest seller Information related to Decorative Doors production for the most recent year follows: ini (Click the icon to view the production data) (Click the icon to view additional information.) Read the requirements Now calculate the cost per unit for each product under the simple conting system. (Round your answers to the nearest cont.) Simple costing system Interior Exterior Total cost per unit Requirement 2. Calculate the cost of an interior door and an exterior door under an activity based cooling system Begin by calculating the ABC allocation rate for each activity. First select the formula then enter the applicable amounts and calculate the rates (Round your answers to the nearest cont. Abbreviations used: Bgt. Budgeted, mach, machine, mat. material, prod. production, sch. scheduling, quality) ABC location rate Prodach Mat handling Machop Assembly Inspection Now calculate the cost of an interior door and an exterior door under an activity based cooling system. (Round interim calculations to the nearest cont and your final answers to the nearest whole dollar) Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Question Help Decorative Doors, Inc., produces two types of doors, Interior and exterior. The company's simple costing system has two direct cont categorie (materials and labor) and one indirect contpool. The simple conting system allocate indirect costs on the basis of machine hours. Recently, the owners of Decorative Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seler Information related to Decorative Doors production for the most recent year follows (Click the loon to view the production data) (Click the icon to view additional information) Read the requirements I Now calculate the cost of an interior door and an exterior door under an activity based costing system (Found interim calculations to the nearest cant and your final answers to the nearest whole dollar) ABC costing system Interior Exterior Direct materials cost Direct manufacturing labor cost Indirect costs allocated: Production scheduling Material handling Machine stup Assembly Inspection Marketing Total costs Now calculate the cost per unit for each product under ABC. (Round your answers to the nearest cont.) Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Decorative Doors, Ina, 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 allocate indirect costs on the basis of machine hours. Recently, the owners of Decorative Doors have been concerned about a dedine in the market share for their interior doors, usually their biggest sel Information related to Decorative Doors production for the most recent year follows (Click the loon to view the production data) (Click the icon to view additional information) Read the restments Total cost per unit Requirement 3. Compare the costs of the doors in requirements 1 and 2. Why do the simple and activity-based costing systems differ in the cost of an interior and exterior door? Relative to the ABC system, the simple costing system Interior doors and exterior doors. Under the simple costing system, the is driving the amount of Overhead allocated to the interior doors. The ABC study reveals that each exterior door requires This is reflected in the allocated to exterior doors in the ABC system Requirement 4. How might Decorative Doors, Inc., use the new cost information from its activity based costing system to address the declining market share for interior doon? (Select all choices that apply) A Decorative Doorsilould consider increasing the price of its exterior doors, depending on the competition it faces in this market B. Decorative Doors, Ine can use the information revealed by the ABC system to change its pricing based on the ABC Dc Decorative Doors, Inc. should consider decreasing the price of its exerior doors to be more competitive D Decorative Doors can use the ABC information to improve its own operations. It could examine each of the indirect cont categories and analyze whether it would be possible to deliver the same level of so but consume fewer indirect resources, or find a way to reduce the per unit.cost-driver cost of some of those indirect resources E Decorative Doors, Inc. should consider increasing the price of its interior doors depending on the competition it faces in this market F Decorative Doors, Inc. should consider decreasing the price of its interior doors to be more competitive Choose from any list or enter any number in the input fields and then continue to the next question Save for Later III Question Ho $ Interior Exterior 3,000 1,600 125 $ 205 55 5 75 18 $ $ $ More Info systen have Data Table The owners have heard of other companies in the industry that are now using an activity-based costing system and are curious how an ABC system would affect their product costing decisions. Aller analyzing the indirect cost pool for Decorative Doors, the owners identity six activities as generating indirect costs production scheduling, material handling, machine setup, assembly, Inspection, and marketing Decorative Doors colected the following data related to the Indirect cool activities Units sold Activity Activity Cost Activity Cost Driver Selling price Production scheduling $ 85,800 Production runs Direct material cost per unit -based Material handling 5 41,184 Material moves Direct manufacturing labor cost per hour Machine setup berlord $ 22.320 Machine setups Direct manufacturing labor-hours per unit Assembly 30.000 Machine hours Production runs Inspection $ 23.400 Number of inspections Material moves Marketing costs were determined to be 3% of the sales revenue for each type of door (costing Machine setups petto Machine hours Print Done based Number of inspections Bitive D. Decorative Doors can use the ABC information to improve its own operations. It could examine each of Print Done but consume fewer indirect resources, or find a way to reduce the per-unit.cost-driver cost of some of E Decorative Doors, Inc. should consider increasing the price of its interior doors depending on the competition it faces in this mat DF Decorative Doors, Inc. should consider decreasing the price of its interior doors to be more competitive 1.30 235 $ 35 75 72 30 162 150 0.000 4.000 140 220 service, Choose from any list or enter any number in the input fields and then continue to the next question Save for Line