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 2020 are as follows. Overhead Cost Pools Amount Purchasing $75.000 Handling materials 82.000 Production (cutting, milling, finishing) 220.000 Setting up machines 100,000 Inspecting 108,000 Inventory control (raw materials and finished goods) 126,000 Utilities 270.000 Total budgeted overhead costs 5981.000 For the last 4 years. Shaker Stairs Co. has been changing overhead to products on the basis of machine hours. For the year 2020, 100.000 machines are budgeted en Notan, owner-manager of Shaker Stairs Co. recently directed his accountant, Bill Seagrer 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 Purchasing Handling materials Production cutting milline fishing Setting machines inspecting Inventory controle materials and sted Cost Drivers Number of orders Number of moves Direct labor hours Number of sus Number of inspection Number of components Square feet Estimated Use of Cost Drivers 600 8.000 100.000 1259 6.000 168000 90.000 Stese order for 50 stays from Community to behou development 250 Steve can sebenta of 250 stawy 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 $103,800 $113,100 15.000 5,300 60 800 100 450 16,000 8,000 0.2/1 (b) Your answer is incorrect What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, es 12.25) Cost per stairway $ 7 e Textbook and Media