Shaker Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, handrails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2020 are 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 82,000 220,000 100,000 108.000 126,000 270,000 $981.000 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, In Seagren, to implement the activity based costing system that he has repeatedly proposed. At Jeremy Nolan's request, 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 Handling materiais Production (cutting, miling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections Number of components Square feet occupied 8.000 100,000 1,250 6,000 168,000 90,000 Steve Hannon, sales manager, has received an order for 250 stairway 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. Direct materials Direct Labor $103,900 $112,500 Steve Mannon, sales manager, has received an order for 250 ways from Community Builders, Inc, a large housing development contractor. At Steve's request, el 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. $100,000 $112,500 15,000 5.500 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 16,000 8.000 Compute the predetermined overhead rating traditional costing with machine hours as the basis (Round answer to decimal places, .g. 12.25) Predetermined overhead rate per machine hour LINK TO TEXT LINK TO TEXT What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places,.. 12.25.) Cost per stairway LINK TO TE N TO TEXT Calculate activity based overhead rate for each activity. (Round answers to 2 decimal places Activity Overhead Rate Calculate activity based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate Purchasing per order Handling materials per move Production per D/L hour Setting up machines per setup Inspecting per inspection Inventory control per component ties per sq. ft. LINK TO TEXT LINK TO TEXT VIDEO SIMILAR PROBLEM Calculate total overhead assigned under ABC Total overhead assigned LINK TO TEXT LINK TO TEXT What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answ Total manufacturing cost per stairway. Click if you would like to Show Work for this questioni Qen Show Work
