Sheffield 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 2025 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 96,000 Inventory control (raw materials and finished goods) 126,000 Utilities 450,000 Total budgeted overhead costs $1,139,000 For the last 4 years, Sheffield Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Sheffield 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 Purchasing Cost Drivers Number of orders Estimated Use of Cost Drivers 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 Direct labor $103,900 $113,000 Machine hours 15,000 Direct labor hours 5,500 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 Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, eg. 12.25.) Activity Purchasing Handling materials Production Setting up machines Inspecting Inventory control Utilities Overhead Rate 125.00 per order 10.25 per move 2.10 per D/L hour $ 80.00 per setup SA 16.00 per inspection 0.75 per component SA 5.00 per sq. ft. Your answer is correct. Calculate total overhead assigned under ABC. Total overhead assigned $ 94450 What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, e.g 12.25) Total manufacturing cost per stairway