Question

0.2/1 Question 2 of 2 View Polls Show At History Current Attempt in Progress Shaker Stars Ca designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components spindles risers, hangers and all permit installation of stairways of varying lengths and widths. All are of white cakwood Budgeted manufacturing overhead costs for the year 2020 are as follows Overhead Cost Pools Purchase Harding materials Production outing milling fishing Setting up machines Inspecting Inventory control materials and finished goods Us Totalbuted overhead costs Amount 575.000 82.000 220.000 95.000 96.000 126.000 270.000 5954 DOO For the last years. Ser Stars Calas been charging overhead to products on the basis of machine hours. For the year 2020 100.000 machine hours are budgeted Jeremy Nolan, care manager of ShakerStars Crecently directed his accountant, al Segren to implement the activity-based couting 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 buted overhead cost pools Rctivity Cost Pool Cost Drivers Number of orders Number of moves Director hours Number of seluas Estimated Use of Cost Drivers 600 BODO 100.000 190 Production fouting fishing 9 FO 0 6 7 3 P U W E R

Answer 1

Answer:
Particulars	Amount (in $ )
Direct Material Cost	$ 103,800
Direct labor Cost	$ 112,700
Manufacturing overhead applied ( 16,000 MH x $ 9.64 )	$ 154,240
Total manufacturing cost	$ 370,740
Number of units of stairway produced	250
Cost per stairway ( $ 370,740 / 250 )	$ 1,482.96