*Problem 4-3A a-b, c1-c3 (Video) (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 oak wood. Budgeted manufacturing overhead costs for the year 2020 are as follows. Amount $75,000 82,000 210,000 Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs 100,000 96,000 126,000 270,000 $959,000 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 Cost Drivers Activity Cost Pools Purchasing 600 Handling materials 8,000 Production (cutting, milling, finishing) 100,000 Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections Number of components Square feet occupied Setting up machines 1,250 Inspecting 6,000 Inventory control (raw materials and finished goods) 168,000 Utilities 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. $104,500 $112,100 15,000 5,700 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 800 100 450 16,000 8,000 *a) Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rates per machine hour Attempts: 0 of 3 used *(b) The parts of this question must be completed in order. This part will be available when you complete the part above. *(c1) The parts of this question must be completed in order. This part will be available when you complete the part above. *(c2) The parts of this question must be completed in order. This part will be available when you complete the part above. *(c3) The parts of this question must be completed in order. This part will be available when you complete the part above