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Thakin Stairs Co. designs and builds factory-made premium wooden stairways for homes. Themanufactured stairway components (spindles, risers, hangers, hand rails) permit installation ofstairways of varying

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Thakin Stairs Co. designs and builds factory-made premium wooden stairways for homes. Themanufactured stairway components (spindles, risers, hangers, hand rails) permit installation ofstairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2014 are as follows. For the last 4 years, Thakin Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2014, 100,000 machine hours are budgeted. Jeremy Nolan, ownermanager of Thakin 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 andthe production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. 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

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