Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bramble Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths, All are of white oak wood. Budgeted manufacturing overhead costs for the year 2022 are as follows. For the last 4 years, Bramble Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2022. 100,000 machine hours are budgeted Jeremy Nolan, owner-manager of Bramble Stairs Co. recently directed his accountant, Bill Seagren, to implement the activity-based costing system that he has repeatedly proposed. At Jeremy Nolan's request, Bill and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools Steve Hannon, sales manager, has recelved an order for 250 stairways from Community Builders, Inc, a large housing development contractor At Steve's request, Bill prepares cost estimates for producing components for 250 stairways so Steve can submit a contract price per stairway to Community Builders. He accumulates the following data for the production of 250 stairways. Directlabor $112,200 Machine hours 15,000 Direct labor hours 5,300 Numberofpurchaseorders60 Numberofmaterialmoves800 Number of machine setups 100 Numberofinspections450 Numberofcomponents16,000 Number of square feet occupied 8,000 Calculate activity-based overhead rate for each activity, (Round answers to 2 decimal places, eg. 12.25.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

2nd Edition

103244293X, 978-1032442938

More Books

Students also viewed these Accounting questions