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Part C (11 marks) Uluru Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails)

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Part C (11 marks) Uluru 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 2020 are as follows. Overhead Cost Pools Turchasing 575.000 Handling materials Production cutting milling finishing) 210.000 Setting up machines 105.000 Inspecting Inventory control raw materials and finished goodie) 120,000 Utilities 180.000 Total budgeted everhead costs $868.000 For the last 4 years, Uluru 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 Uluru 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 cest pools Cest drivers Espected use of Number of orders Handling materials Number of moves Production cutting milling Direct labor hours 100.000 finishing Setting up machines Number of setups Inspecting Number of inspection Inventory control raw Number of compete 12.000 materials and finished goods Utilities Squee $ cewis 1.000 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 S101 Director $112.000 Machinebours Director hours Number of purchase onders Number of materiale son Number of machine schups 100 Number of inspections Number of compte Number of sqane foteccupied 14.50 16.000 Requirements: What is the manufacturing cost per ty under traditional.com () What is the manufacturing away under the propied activity based cesting (3 mars

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