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Problem 4-3A Shaker 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 2017 are as follows Overhead Cost Pools Amount Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs $73,800 82,400 216,000 105,000 108,000 129,360 270,000 $984,560 For the last 4 years, Shaker Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2017, 100,000 machine hours are budgeted Jeremy Nolan, owner-manager of Shaker Stairs Co., recently directed his accountant, Bill Segren, 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 Expected Use of Activity Cost Pools Cost Drivers Cost Drivers Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Number of orders Number of moves Direct labor hours Number of setups Number of inspections Number of components 600 8,000 100,000 1,250 6,000 168,000 90,000 Square feet occupied