provide solution with required working notes

Question 6 Safety First manufactures and sells two types of security doors. Premium doors are sold for $950 each and standard doors are sold for $600 each. Safety First manufactured 50,000 Premium doors and 20,000 Standard doors. Direct manufacturing costs for each security door is as follows: Cost Type Premium Standard Direct materials $95.00 $60.00 Direct labour $80.00 $50.00 The accountant for Safety First is considering using activity-based costing (ABC) to allocate the manufacturing overhead costs to a security door. The following information has been obtained for the overheard costs for the year ending 30 June 2015 Activity Cost driver Estimated overhead Activity based Overhead rate Purchasing Number of orders $1,800,000 $400 per order Machine set-ups Number of set-ups $2,000,000 $2,500 per set-up Extruding Machine hours $3,200,000 $40 per machine hour Quality control Tests and inspections $1,600,000 $200 per test The cost drivers used for each product are: Cost driver Premium Standard Total Purchase orders 2,500 2,000 4,500 Machine set-ups 500 300 800 Machine hours 60.000 20.000 80,000 Tests and inspections 5,000 3,000 8,000 Required: 1. Assign the total manufacturing overhead costs to the premium and standard security doors using activity- based-costing (ABC). (10 marks) 2. What is the cost per unit for the Premium and Standard security doors? (3 marks) 3. What is the gross profit per unit from the sale of each Premium and Standard security door? (2 marks)