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Sturdy Doors, Inc., one indirect cost pool. The simple costing system allocates indirect costs on the basis of machine-hours. Recently, the owners of Sturdy Doors
Sturdy Doors, Inc., one indirect cost pool. The simple costing system allocates indirect costs on the basis of machine-hours. Recently, the owners of Sturdy Doors have been concerned about a decine in the market share for their interior doors, usually their biggest seller, Information related to Sturdy Doors production for the most recent year follows EEB (Click the icon to view the production data) produces two types of doors, interior and exterior. The company's simple costing system has two direct cost categories (materials and labor) and (Click the icon to view additional information.) Read the tequirements. Click the icon to see the Worked Solution. Requirement 1. Calculate the cost of an interior door and an exterior door under the existing simple costing 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 rate. (Round your answer to the nearest cent Abbreviations used bgt budgoted, qty quantity) Budgeted overhead rate Simple costing system $ 2682 per machine-hour Bgt total costs in indirect cost pool Bgt. total qty of cost allocation base 268.240 10,000 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 nearest cent and your final answers to the nearest whole dollar) Simple costing system Direct materials cost Interior Exterior 198,000 152,000 Move your pointer over or tap on the cells with red arrows to see incorrect answers
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