$2020$ are as follows.

Assign overhasd costs using tradhional costing and ABC; compare resuts

For the last $4$ years, Shaker Stalre Co$.$ has been charging overhead to products on the basis of machine hours. For the year $2020,100,000$ machine hours are budgeted.

following data for the production of $250$ stainways

Instructions

a$.$ Compule the predetermined overhead rate using traditional costing with machine hours as the basis.

b$.$ What is the manufacturing cost per stailway under traditional costing? $($Round to the nearest cent$)$

Cost$/$atainay $$1,365\mathrm{.}8\mathrm{.}4$

c$.$ What is the manufacturing cost per stailway under the proposed activity$-$based costing? $($Round to the nearest cent. Prepare all of the necessary schedules.$)$

Cost$/$stairway $$1,139\mathrm{.}80$

d$.$ Which of the two costing systems is preferable in pricing decisions and why?