installation of stairways of wayang Juestion Stellar Stairs Co. designs and builds factory made premium wooden stairways for homes. The manufactured stay components (spindles, risers, hangers, handrails) per lengths and widths. All are made of white oak wood. The company's budgeted manufacturing overhead costs for 2020 are as follows: Overhead Cost Pools Purchasing $70,000 Handling materials 81,000 Production (cutting, milling, finishing) 216.000 Setting up machines 95,000 Inspecting 91,000 Inventory control raw materials and finished goods) 126,000 Utilities 180.000 Total budget overhead costs For the past four years, Stellar Stairs has been charging overhead to products on the basis of machine hours for 2020, it has budgeted 100,000 machine hours Heather Fujar, owner manager of Stellar Stas, recently directed her accountant, Kiko Nishikawa, to implement the activity based costing wstem that she has repeatedly proposed At Heathers the production for person identify the following cost drivers and their usage for the previously budgeted overhead cost pools Activity Cost Pools Purchasing Handling materials Corst Drivers Number of orders Number of moves (cutting, milling ist ) Setting up machines Inspecting Inventory control ww mate and used goods) Direct labour hours Number of set-ups Number of inspections 10,000 1.250 7.000 Number of components fiquare metres occupied 000 Jason Dion, sales manager, has received an order for 250 ways from Community Builders , w ho components for 280 staways so lason can submit a contract price per star to y Balders. She com development contracte es the foo d for the production prepares cos e s for producing $103,600 112,000 14,500 5,000 Direct materials Direct labour Machine hours Direct labour hours Number of purchase orders Number of material moves Number of machine set-ups Number of inspections Number of components Number of square metres occupied 16,000 (a) Your answer is incorrect. Try again Calculate the predetermined overhead rate using traditional costing with machine Predetermined overhead rate 10.05 per machine hour