Question 2 (8 marks) Dynamic Doors Ltd. (Dynamic) has been using a job order costing system to allocate overhead to products using direct labour costs. The controller for Dynamic has recently learned about activity-based costing and has collected information on the following activities used in manufacturing its doors for the upcoming period Activity Cost driver Budgeted cost Budgeted activity Materials handing of machine turns $40.000 4.000 machine turns Machine setup #of setups $20,000 100 setups Quality control #of inspections $55,000 1,500 inspections Design of design hours $85,000 10,000 design hours Total budgeted direct labour costs for the period are $300,000. The following information is available for a set of doors to be completed for one of Dynamic's new customers, a local restaurant Direct materials $ 5,000 Direct labour $10,000 # of machine turns 2 # of setups # of inspections # of design hours 300 Required: a) Using the job order costing method, calculate Dynamic's total cost for the new restaurant doors. (3 marks) b) Using activity-based costing, calculate Dynamic's total cost for the new restaurant doors