Stellar stairs Co. designs and builds factory-made premium wooden stairs for homes. The manufactured components (spindles, risers, hangers, hand rails) permit installation of stairs of varying lengths and widths. All are of white oak wood. The company's budgeted manufacturing overhead costs for 2016 are as follows: 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 Jason Dion, sales manager, has received an order for 280 stairs from Community Builders, Inc. a large housing development contractor. At Jason's request, Kiko prepares cost estimates for producing components for 280 stairways so can submit a contract price per stair to Community Builders. She accumulates the following data for the production of 280 stairways: (a) Calculate the predetermined overhead rate using traditional costing with machine hours as the basis. (b) What is the manufacturing cost per stairway under traditional costing? (Round to the nearest cent.) (c) What is the manufacturing cost per stairway under the proposed activity-based costing? (Round to the nearest cent Prepare all of the schedules.) (d) Which of the two costing systems is preferable in pricing decisions and why