Stellar Stairs Co. designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles, risers, hangers, hand rails) permit installation of stairs of varying lengths and widths. All are made of white oak wood. The company's budgeted manufacturing overhead costs for 2016 are as follows: Overhead Cost Pools Amount $69,000 Purchasing 82,000 Handling materials Production (cutting, m ng, finishing) 210,000 Setting up machines 95,000 90,000 Inspecting Inventory control (raw materials and finished goods) 126,000 Utilities 180,000 $852,000 Total budget overhead costs For the last four years, Stellar Stairs Co. has been charging overhead to products on the basis of machine hours. For 2016, it has budgeted 100,000 machine hours. Heather Fujar, owner-manager of Stellar Stairs Co., recently directed her accountant, Kiko Nishikawa, to implement the activity-based costing system that she has repeatedly proposed. At Heather Fujar's request, Kiko and the production foreperson identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Expected Use of Activity Cost Pools Cost Drivers Cost Drivers Purchasing Number of orders 730 Handling materials Number of moves 8,780 Production (cutting, m finishing) Direct labour hours 107,770 Setting up machines Number of set-ups 1,650 Number of inspections Inspecting 6,560 Inventory control (raw materials and finished goods) Number of components 168,310 9,240 Utilities Square metres occupied