Question 2 Stellar Stals Co designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components spindles, risers, hangars, handrailspermit Installation of stairways of varying lengths and widths. Al are made of white cak wood. The company's budcted manufacturing overhead costs for 2020 are as follows: $68.000 5000 Overhead Cant Pool Purchasing Handing materials Production (cutting, milling, finishing) Scting up machines Inspecting Crvery contrul raw materials and fristad yoruch) Uldis Toldbek uvell 95.000 91,000 126.000 180.000 S849.000 For the past four years, Stella. Stairs has been charging ovatiead to products on the basis of machinehousFor 2020, it has budgeted 100,000 machine hours. Heather For Owner-manager of Stelar Stairs, recently directed her accountant, Kiko Nishikawe, to implement the actity-based costing system that she has repeatedly proposed. At Heatter's request. Kku and the production foreperson certify the folowing cost drivers and their usage for the previously budgeted overned cast pools Cost Drivers Number of orders Number of moves Estimated Use of Cost Drivers 800 9,000 Activity Cost Pools Purchasing Hercing materials Production (cutting, milling, finishing) Setting up machines Trapecting Innenry entral (ran materials and finished goods) Utilities Direct labour hour Number of set-ups Number of inspections 104,000 1,250 7.000 Number of companies Square metres occupied 168,000 10,000 Iesan lan, les manyer, as er ved an order fur 280 stairs from Camerunty Haldense, lenye kuruls the falling data for the production of 280 Ways: Direct materials Direct labour $.03.GCO 112,000 5.0CC Direct labour hours Member of purchase orders Number of material moves Number of madinc set-ups Number of components Number of scare metres occupied 16,0CC (a) Your answer is correct. Calculate the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate er machine hour SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is correct. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost per stairway 1209.66| SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (C) Your answer is incorrect. Try again. What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost per stairway