Concord Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand raild permit installation of stairways of varying lengths and widths. All are of white oak wood Budgeted manufacturing overhead costs for the year 2025 are as follows Overhead Cost Pools Amount Purchasing $75,000 Handling materials 82,000 Production (cutting milling finishing 210,000 Setting up machines 105,000 Inspecting 120.000 126.000 Utilities 450.000 $1.168.000 Inventory control (raw materials and finished goods) Total budgeted overhead costs For the last 4 years, Concord Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100.000 machine hours are budgeted Jeremy Nolan, owner manager of Concord 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. Activity Cost Pools Purchasing Cost Drivers Number of orders Estimated Use of Cost Drivers 600 Handling materials Number of moves 8.000 Production (cutting, milling fishing) Direct labor hours 100.000 Setting up machines Number of setups 1.250 Inspecting Number of inspections 6.000 Inventory control raw materials and finished goods) Number of components 168.000 Utilities Square feet occupied 90.000 Steve Hannon, sales manager, has received 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 accamdates the following data for the production of 250 stairways Direct materials Direct labor $104.300 $112.800 Machine hours 15.000 Direct labor hours 5,600 Number of purchase orders 60 Number of material moves 100 Number of chinesetups 100 Number of inspections 450 Number of components 14.000 Number of pore feet occupied 8.000