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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

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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 Pa Amount Prhn 5000 Handing matera odutioneutting mng fishing 29000 102.500 Setng up mechines ing sca00 ery r merls and ed ds 20 0000 SLOL ol budgeted everhead cests 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 Epted Ue of Cor Activity Cest Peols Ceat Drivers Nter f rde Pesheg Number af moves .000 Handing matenas Production (outting, miing fishing Direct bor hou Settng up machi Number af wetup Ipcting bera ton Ner f components Inventory contral rmerials and finhed geods) Square eet np uEtes 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. Diret mate s0100 Direct bor s12400 Machine hours 5,00 Direct labor hurs 400 Number of purchase anders 60 Number of material ves s00 Number of machine stug s0 Number of inspectons 450 Number of components 36,000 Number of square feet ocupied s,000 Your answer is incorrect. Try again. Compute the predetermined overhead rate using tradi answer to 2 decimal places, e.g. 12.25.) tional costing with machine hours as the basis. (Round per mane hour Predetermined overhead rte Your answer is incorrect. Try again. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) Cost per starways SE433 Your answer is correct Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) 10 pmane tour Predetermined ovemead rate Your answer is incorrect. Try again. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) Cest per staiay 15194 33 UNN TEXET Your answer is correct. Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate 125 per order Purchasing 10.27 per move Handing materials 2.19 per L houn Production Setting sp machines 2 per setup 17 per inspection Inspecting 0.4 per component Inventory conrak per s n utes 40 seow souuraon UNK TO TEKT TO TENT Your answer is incorrect. Try again. Caluclate total overhead assigned under ABC. 69350 Total overhead assigned Your answer is incorrect. Try again. What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answe decimal places, e.g. 12.25.) wer to 2 Total cost per stairway 1139.80 Click if you would like to Show Work for this question: o Show Work OEXT TO TET Qution Attempts 2 of 3 sed sau ro LATEs suaT ANSwER 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 Pa Amount Prhn 5000 Handing matera odutioneutting mng fishing 29000 102.500 Setng up mechines ing sca00 ery r merls and ed ds 20 0000 SLOL ol budgeted everhead cests 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 Epted Ue of Cor Activity Cest Peols Ceat Drivers Nter f rde Pesheg Number af moves .000 Handing matenas Production (outting, miing fishing Direct bor hou Settng up machi Number af wetup Ipcting bera ton Ner f components Inventory contral rmerials and finhed geods) Square eet np uEtes 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. Diret mate s0100 Direct bor s12400 Machine hours 5,00 Direct labor hurs 400 Number of purchase anders 60 Number of material ves s00 Number of machine stug s0 Number of inspectons 450 Number of components 36,000 Number of square feet ocupied s,000 Your answer is incorrect. Try again. Compute the predetermined overhead rate using tradi answer to 2 decimal places, e.g. 12.25.) tional costing with machine hours as the basis. (Round per mane hour Predetermined overhead rte Your answer is incorrect. Try again. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) Cost per starways SE433 Your answer is correct Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) 10 pmane tour Predetermined ovemead rate Your answer is incorrect. Try again. What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) Cest per staiay 15194 33 UNN TEXET Your answer is correct. Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Overhead Rate 125 per order Purchasing 10.27 per move Handing materials 2.19 per L houn Production Setting sp machines 2 per setup 17 per inspection Inspecting 0.4 per component Inventory conrak per s n utes 40 seow souuraon UNK TO TEKT TO TENT Your answer is incorrect. Try again. Caluclate total overhead assigned under ABC. 69350 Total overhead assigned Your answer is incorrect. Try again. What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answe decimal places, e.g. 12.25.) wer to 2 Total cost per stairway 1139.80 Click if you would like to Show Work for this question: o Show Work OEXT TO TET Qution Attempts 2 of 3 sed sau ro LATEs suaT

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