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Question 2 Stellar Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway cFor the past four years, Stellar Stairs has been charging overhead to products on the basis of machine hours. For 2020, it haDirect materials Direct labour Machine hours Direct labour hours Number of purchase orders Number of material moves Number of

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Answer #1

a.

Predetermined overhead rate $8.50

working:

total budgeted overhead costs / budgeted machine hours

=>$850,000 / 100,000

=>$8.50. per machine hour.

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