Problem 17-3A (Part Level Submission) 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 aak wood. Budgeted manufacturing overhead costs for the year 2017 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) utilities Total budguted overhead costs Amount $73,800 82,100 216,000 105,000 108,000 129,360 270,000 $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 Seegren, to implement the activity-based costing systern that he has repeatedly proposed. At Jererny Nolan's request, Bill and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Activity Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control raw materials and finished goods) Cost Drivers Number of orders Number of moves Direct labar hours Number of setups Number of inspections Number of components Square feet occupied Expected Use of Cost Drivers 600 4,000 100,000 1,250 6.000 168,000 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. $104,100 $113,000 15,500 5,500 60 Direct materials Direct labor Machine hours Direct labor hours Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of components Number of square feet occupied 600 100 450 16,000 9,000 Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate Purchasing 123.00 per order Handling materials 10.30 per move Production 2.16 per D/L hour Setting up machines 84.00 per setup Inspecting 18.00 per inspection Inventory control 0.77 per component Utilities 3.00 per sq. ft. Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT (c2) Your answer is correct. Caluclate total overhead assigned under ABC. Total overhead assigned T 80320 Click if you would like to Show Work for this question: Open Show Work What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, e.g. 12.25.) Total cost per stairway &