SturdyDoors, Inc., 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 allocates indirect costs on the basis of machine-hours. Recently, the owners of SturdyDoors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to SturdyDoors production for the most recent year follows:

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.

270,492 / 10,000 = $27.05 per machine-hour

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.)

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