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Shaker 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 2017 are as follows. Overhead Cost Pools Amount Purchasing $73,800 Handling materials 82,240 Production (cutting, m finishing) 218,000 Setting up machines 97,500 Inspecting 108,000 129,360 Inventory control (raw materials and finished goods 360,000 $1,068,900 Total budgeted overhead costs 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 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. Expected Use of Activity Cost Pools Cost Drivers Cost Drivers Purchasing Number of orders 600 Handling materials Number of moves 8,000 Production (cutting, m ng, finishing) Direct labor hours 100,000 Setting up machines Number of setups 1,250 Number of inspections Inspecting 6,000 Inventory control aw materials and finished goods Number of components 168,000 Square feet occupied 90,000