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 Elegant Doors, the owners identify six activities as generating indirect costs: production scheduling, material handling, machine setup, assembly, inspection, and marketing. Elegant Doors collected the following data related to the indirect-cost activities:

Activity	Activity Cost		Activity-Cost Driver
Production scheduling	$75,050		Production runs
Material handling	$41,400		Material moves
Machine setup	$23,560		Machine setups
Assembly	$30,000		Machine-hours
Inspection	$13,300		Number of inspections

Marketing costs were determined to be 5% of the sales revenue for each type of door.

Elegant Doors, Inc., produces two types of doors, interior and exterior. The company's simple cosling syster has two direct-cost categories (materials and labor) and one indirect-cost pool. The simple costing syslern allocates indirect costs on the basis of machine-hours. Recently, the owners of Elegant Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Elegant 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 requirements. 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 = budgeted, qty = quantity.) Bgt. total costs in indirect cost pool + Bgt. total aty of cost allocation base Budgeted overhead rate Simple costing system per production run Data Table Exterior Interior 3,000 Units sold 1,600 140 $ 220 $ $ 65 45 $ 13 $ $ 13 1.60 2.45 Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups Machine-hours 30 65 70 160 50 140 Choose from any list or enter any number in the input fields and then click Check Answer. 6,500 3,500 Number of inspections 230 150 Elegant Doors, Inc., produces two types of doors, interior and exterior. The company's simple cosling syster has two direct-cost categories (materials and labor) and one indirect-cost pool. The simple costing syslern allocates indirect costs on the basis of machine-hours. Recently, the owners of Elegant Doors have been concerned about a decline in the market share for their interior doors, usually their biggest seller. Information related to Elegant 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 requirements. 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 = budgeted, qty = quantity.) Bgt. total costs in indirect cost pool + Bgt. total aty of cost allocation base Budgeted overhead rate Simple costing system per production run Data Table Exterior Interior 3,000 Units sold 1,600 140 $ 220 $ $ 65 45 $ 13 $ $ 13 1.60 2.45 Selling price Direct material cost per unit Direct manufacturing labor cost per hour Direct manufacturing labor-hours per unit Production runs Material moves Machine setups Machine-hours 30 65 70 160 50 140 Choose from any list or enter any number in the input fields and then click Check Answer. 6,500 3,500 Number of inspections 230 150