CALCULATOR PRINTER VERSION BACK NEXT Problem 17-3A (Part Level Submission) Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, handrais) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2017 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Amount $74,400 82,640 216,000 96,250 96,000 131,040 360,000 $1,056,330 For the last 4 years, Shaker Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2017, 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Shaker Stairs Co., recently directed his accountantsSeagren, 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 Expected Use of Cost Drivers Activity Cost Pools Purchasing Handing materials Production (cutting, miling, finishing) Setting up machines Inspecting Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspection 1.000 100 000 1.250 40 PM Inventory control (raw materials and finished goods) Utilities Number of components Square feet occupied 168,000 90,000 Steve Hannon, sales manager, has received an order for 250 stairways from Community Builders, Inc., a large housing development contrac prepares cost estimates for producing components for 250 stairways so Steve can submit a contract price per stairway to community Builde following data for the production of 250 stairways. $104,400 $112,700 15,300 5,300 Direct materials Direct labor Machine hours Direct labor hours Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of components Number of square feet occupied 300 100 450 tudy 16,000 8,000 Your answer is correct. Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 10.56 per machine hour Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used Your answer is correct. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) Cost per stairway 1514.67 CALCULATOR PRINTER VERSION BA Your answer is correct. alculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate Purchasing 24 per order Handling materials 10.33 per move Production Setting up machines . 2.16 per D/L hour 77 per setup 16 per inspection 0.78 per component Inspecting Inventory control Utilities 4 per sq.ft Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER PM Attempts: 2 of 3 used (c2) Caluclate total overhead assigned under ABC. Total overhead assigned Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT tudy