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Shaker 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 2020 are as follows. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control raw materials and finished goods) Utilities Total budited overhead costs Amount $75,000 82.000 220,000 100,000 108.000 126.000 270.000 5981 000 Jeremy Nolan, owner-manager of Shaker 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 Handling materials Production cutting milling, finishing Setting up machines Inspecting Inventory control raw materials and finished goods Utile Cost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections Number of components Square feet occupled Estimated Use of Cost Drivers 600 8.000 100,000 1.250 6,000 168.000 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 Machine hours Direct labor hour Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of components Number of square feet copied $103,800 $113,100 15.000 5.300 60 800 100 450 16.00 8.000 Calculate total overhead assigned under ABC. Total overhead assigned 95860 e Textbook and Media Solution