Question 6 of 10 Sunland 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 2022 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 budgeted overhead costs Amount $75,000 82,000 210,000 95,000 114,000 126,000 360,000 -/1 = : $1,062,000 For the last 4 years, Sunland Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2022, 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Sunland 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.

Sunland 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 2022 are as follows. For the last 4 years, Suniand Stairs Ca. has been charging overhead to products on the basis of machine hours. For the year 2022. 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Sunfand Stairs Co, recently directed his accountant, Bill Seagren, to implement the activity-based costing system that he has repeatedly proposed. At Jereriy 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, Incu, 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 withmachine hours as the basis. (Round answer to 2 . decimal places, e.s. 12.25.) Predetermined oyerhead rate perinachine hour What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, est. 12.25 .) Cost per stalirway eTextbook and Media Calculate activity-based overhead rate for each activity, (Round answers to 2 decimal places, e. 12.25.) Calculate total overhead assigned under ABC. Total overtiead assigned What is the manutacturine cost poe stairwhy under the proposed actwity based costine? (Round onswer to 2 decimel ploceh. c. 12.25. ) Total manufacturing cost per stalinay