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Requirements 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. 2. Calculate the cost of an

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Requirements 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. 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? 4. How might Sturdy Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? the most recent year follows: (Click the icon to view the production data.) (Click the icon to view additional information.) Read the Requirement 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. the nearest cent. Abbreviations used: bgt. = budgeted, qty = quantity.) Data table More info 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. After analyzing the indirect cost pool for Sturdy Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Sturdy Doors collected the following data related to the indirect cost activities: Marketing costs were determined to be 4% of the sales revenue for each type of door. Requirements 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. 2. Calculate the cost of an interior door and an exterior door under an activity-based costing system. 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? 4. How might Sturdy Doors, Inc., use the new cost information from its activity-based costing system to address the declining market share for interior doors? the most recent year follows: (Click the icon to view the production data.) (Click the icon to view additional information.) Read the Requirement 1. Calculate the cost of an interior door and an exterior door under the existing simple costing system. the nearest cent. Abbreviations used: bgt. = budgeted, qty = quantity.) Data table More info 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. After analyzing the indirect cost pool for Sturdy Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Sturdy Doors collected the following data related to the indirect cost activities: Marketing costs were determined to be 4% of the sales revenue for each type of door

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