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Please help with accounting homework Thakin Stairs Co. of Moore designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers,
Please help with accounting homework Thakin Stairs Co. of Moore 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. 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. 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. Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answers to 2 decimal places, e.g. $12.25.) What is the manufacturing cost per stairway under traditional costing? (Round answers to 2 decimal places, e.g. $12.25.) Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. $12.25.) Caluclate total overhead assigned under ABC. What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answers to 2 decimal places, e.g. $12.25.)
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