iPad ? 2:54 AM 61%4 a edugen.wileyplus.com Exercise 181 Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway Exercise 182 components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of Exercise 184 white oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Problem 4-2A a, b1-b2 (Video) Overhead Cost Pools Amount Problem 4-3A a-b, c1-c3 Purchasing $75,000 (Video) Handling materials 82,000 Review Score Production ( cutting, milling, finishing ) 210,000 Review Results by Study Setting up machines 105,000 Objective Inspecting 96,000 Inventory control (raw materials and finished goods) 126,000 Utilities 360,000 Total budgeted overhead costs $1,054,000 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 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. Estimated Use of Activity Cost Pools Cost Drivers Cost Drivers Purchasing Number of orders 600 Handling materials Number of moves 8,000 Production (cutting, milling, finishing) 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 accumulates the following data for the production of 250 stairways