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Shaker Stairs Co, designs and builds factory-mado 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 ous wood. Budgeted manufacturing overhead costs for the year 2020 are as follows: For the last 4 years, Shaker Stairs Co. has beencharging overtiead to poodicts on the basts of machine hourh. For the yex 2020. 100,000 machine hours are budgeted: Jeremy Nolan ownerimanoger of Shaker 5 tairs Ca. recently directed his ackountant, Bill 5 eagren to fimylemeat the activity baned ias repeatedly proposed. At Jereny Nolansrequest, Bill and the production foreman isent ily the following For the last 4 years, Shaker Stairs Co, has been charging overhead to products on the basis of machine hours. For the year 2020 , 100.000 machine hours are budgeted. Jeremy Nolan, owner-manager of Shaker Stairs Co. recently dilrected 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 cast drivers and their usage for the previously budgeted overhead cost pools. Steve Hannon, sales manager, has received an orde[ for 250 stain ways from Community builders ines a large bouning develonment contractor. At Steve s request, Bill prepares costestimatei for peodocing components for 250 stairways so Steve can wubmit a contract price per stalfway to Community Builders. He accumulstes the following data for the production of 250 stainwavs. Steve Hannon, sales manazer, has recelved an order for 250 staliways from Commanity Buiders, Inc, a large housing devilopment contractor. At Steve's request, Bill prepares cost estimates for producing components for 250 st:ways to Steve can submit a contrsct. price per stairway to Community Builders. He accumulates the following data for the production of 250 utairway. Comgute the pesolermined overtinad rate using tratitional costing with machine hours as the fanis. Thound arner to 2 decliner placin, e. 12.25J Predetermined twerhiead rate per inachine hour Calculate activity based overhead rate for each activiy. (Round anwers to 2 deciand ploces es 1225 ) (c2) (c3)