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) 210,000 Setting up machines 100,000 Inspecting 1201000 Inventory control (raw materials and finished goods) 120.000 Utilities 450.000 Total budgeted overhead costs $1.100.000 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. Bull Scatrem, to implement the activity-based costing system that he has repeatedly proposed. AuJeremy Nolan's reques Bad un production foreman identify the following cost drivers and their usage for the previously budgeten overhuad cost pools E - 2 Activity Cost Pools Cost Drivers CSETIAUS UT 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. In a large housing development contractor. Al Steve's request. Bil 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 $104.000 Direct labor $112 400 Machine hours 15.000 Direct labor hours 5.100 Number of purchase orders 60 Number of material moves SU Number of machine setups 100 Number of inspections 450) Number of components 1ODO Number of square feet occupied MODO d) Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate $ w per machine hour eTextbook and Media Assistance Used eTextbook Saveformeer Attempts: 0 of 3 used Submit Answer (b) What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places ang 1225) Cost per stairway $ e Textbook and Media Assistance used Bor LE Atcem peso of used Submit Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places 12.250 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 5 per sq.ft. e Textbook and Media Save for Later Attempts of 3 used Submit Answer (02) Calculate total overhead assigned under ABC Total overhead assigned $ What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, eg 12.25.) Total manufacturing cost per stairway eTextbook and Media you Attempts: 0 of 3 used SLANSW