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 while oak wood. The company's budgeted manufacturing overhead costs far 2016 are as follows: Her 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 matching hours. Heather owner-manager of Stellar Stairs Co., recently directed her accountant, to Implement the activity-based costing system that she has repeatedly proposed at Heather request, 3nd the production foreperson identify the following cost drivers and there usage for the previously budgeted overhead cost pools. Dian, sales manager has received an order for 280 stairs from Community Builders, Inc., a large development contractor. At Japan's request, prepares cost estimates for producing components for 280 stairways so Jason can submit a contract price per stair to Community Builders. she accumulates the following data for the production of 780: Calculate the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 15.25.) What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 15.25.) What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, e.g. 15.25.) Which of the two costing systems is preferred in pricing decisions? 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 while oak wood. The company's budgeted manufacturing overhead costs far 2016 are as follows: Her 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 matching hours. Heather owner-manager of Stellar Stairs Co., recently directed her accountant, to Implement the activity-based costing system that she has repeatedly proposed at Heather request, 3nd the production foreperson identify the following cost drivers and there usage for the previously budgeted overhead cost pools. Dian, sales manager has received an order for 280 stairs from Community Builders, Inc., a large development contractor. At Japan's request, prepares cost estimates for producing components for 280 stairways so Jason can submit a contract price per stair to Community Builders. she accumulates the following data for the production of 780: Calculate the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 15.25.) What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 15.25.) What is the manufacturing cost per stairway under the proposed activity-based costing? (Round answer to 2 decimal places, e.g. 15.25.) Which of the two costing systems is preferred in pricing decisions
