I did the majority of the work, I just got stuck on the last 2 questions that are bold and underlined. I tried different ways to try and get the answer but I just cant figure it out...Please help...Oh and it will if you show me how you got the answer I would greatly appreciate it.

Problem 17-3A

Thakin 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 2014 are as follows.

Overhead Cost Pools

Amount

Purchasing

$ 69,000

Handling materials

82,000

Production (cutting, milling, finishing)

210,000

Setting up machines

95,000

Inspecting

90,000

Inventory control (raw materials and finished goods)

126,000

Utilities

180,000

Total budget overhead costs

$852,000

For the last 4 years, Thakin Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2014, 100,000 machine hours are budgeted.

Jeremy Nolan, owner-manager of Thakin 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

Cost Drivers

Expected Use of

Cost Drivers

PurchasingNumber of orders600

Handling materialsNumber of moves8,000

Production (cutting, milling, finishing)Direct labor hours100,000

Setting up machinesNumber of setups1,250

InspectingNumber of inspections6,000

Inventory control (raw materials and finished goods)Number of components168,000

UtilitiesSquare feet occupied90,000

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 accumulates the following data for the production of 250 stairways.

Direct materials$103,600

Direct labor$112,000

Machine hours14,500

Direct labor hours5,000

Number of purchase orders60

Number of material moves800

Number of machine setups100

Number of inspections450

Number of components16,000

Number of square feet occupied 8,000

Correct answer.Your answer is correct.

Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answers to 2 decimal places, e.g. $12.25.)

Predetermined overhead rate

$Entry field with correct answer

8.52

per machine hour

Correct answer.Your answer is correct.

What is the manufacturing cost per stairway under traditional costing? (Round answers to 2 decimal places, e.g. $12.25.)

Cost per stairway

$Entry field with correct answer

1356.56

Correct answer.Your answer is correct.

Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. $12.25.)

Activity

Overhead Rate

Purchasing

$Entry field with correct answer

115

per order

Handling materials

$Entry field with correct answer

10.25

per move

Production

$Entry field with correct answer

2.10

per D/L hour

Setting up machines

$Entry field with correct answer

76.00

per setup

Inspecting

$Entry field with correct answer

15.00

per inspection

Inventory control

$Entry field with correct answer

0.75

per component

Utilities

$Entry field with correct answer

2

per sq. ft.

Incorrect answer.Your answer is incorrect. Try again.

Caluclate total overhead assigned under ABC.

Total overhead assigned

$Entry field with incorrect answer

72964

Incorrect answer.Your answer is incorrect. Try again.

What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answers to 2 decimal places, e.g. $12.25.)

Total cost per stairway

$Entry field with incorrect answer

1154.26

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I did the majority of the work, I just got stuck on the last 2 questions that are bold and underlined. I tried different ways to try and get the answer but I just cant figure it out...Please help...Oh and it will if you show me how you got the answer I would greatly appreciate it.

Problem 17-3A

Thakin 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 2014 are as follows.

Overhead Cost Pools

Amount

Purchasing

$ 69,000

Handling materials

82,000

Production (cutting, milling, finishing)

210,000

Setting up machines

95,000

Inspecting

90,000

Inventory control (raw materials and finished goods)

126,000

Utilities

180,000

Total budget overhead costs

$852,000

For the last 4 years, Thakin Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2014, 100,000 machine hours are budgeted.

Jeremy Nolan, owner-manager of Thakin 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

Cost Drivers

Expected Use of

Cost Drivers

PurchasingNumber of orders600

Handling materialsNumber of moves8,000

Production (cutting, milling, finishing)Direct labor hours100,000

Setting up machinesNumber of setups1,250

InspectingNumber of inspections6,000

Inventory control (raw materials and finished goods)Number of components168,000

UtilitiesSquare feet occupied90,000

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 accumulates the following data for the production of 250 stairways.

Direct materials$103,600

Direct labor$112,000

Machine hours14,500

Direct labor hours5,000

Number of purchase orders60

Number of material moves800

Number of machine setups100

Number of inspections450

Number of components16,000

Number of square feet occupied 8,000

Correct answer.Your answer is correct.

Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answers to 2 decimal places, e.g. $12.25.)

Predetermined overhead rate

$Entry field with correct answer

8.52

per machine hour

Correct answer.Your answer is correct.

What is the manufacturing cost per stairway under traditional costing? (Round answers to 2 decimal places, e.g. $12.25.)

Cost per stairway

$Entry field with correct answer

1356.56

Correct answer.Your answer is correct.

Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. $12.25.)

Activity

Overhead Rate

Purchasing

$Entry field with correct answer

115

per order

Handling materials

$Entry field with correct answer

10.25

per move

Production

$Entry field with correct answer

2.10

per D/L hour

Setting up machines

$Entry field with correct answer

76.00

per setup

Inspecting

$Entry field with correct answer

15.00

per inspection

Inventory control

$Entry field with correct answer

0.75

per component

Utilities

$Entry field with correct answer

2

per sq. ft.

Incorrect answer.Your answer is incorrect. Try again.

Caluclate total overhead assigned under ABC.

Total overhead assigned

$Entry field with incorrect answer

72964

Incorrect answer.Your answer is incorrect. Try again.

What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answers to 2 decimal places, e.g. $12.25.)

Total cost per stairway

$Entry field with incorrect answer

1154.2