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 2017 are as follows.

Overhead Cost Pools Amount

Purchasing $75,000

Handling materials $82,160

Production (cutting, milling, finishing) $219,000

Setting up machines $102,500

Inspecting $102,000

Inventory control (raw materials & finished goods) $141,120

Utilities $360,000

Total budgeted overhead costs $1,081,780

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 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.

Activity Cost Pools Cost Drivers Expected Use of Cost Drivers

Purchasing Number of orders 600

Handling materials Number of moves 8,000

Production (cutting, milling, finishing) Direct labor hours 100,000

Setting up machines Number of setups 1,250

Inspecting Number of inspections 6,000

Inventory control (raw materials and finished goods) Number of components 168,000

Utilities Square feet occupied 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.

Direct materials $103,800

Direct labor $112,400

Machine hours 15,100

Direct labor hours 5,400

Number of purchase orders 60

Number of material moves 800

Number of machine setups 100

Number of inspections 450

Number of components 16,000

Number of square feet occupied 8,000

What is the activity-based overhead rate for each activity? (Round to 2 decimals)

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

Utilities $_____________per sq. ft.

Please show me how you arrive at these answers.