Please show your work. Oriole 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 2025 are as follows.PurchasingHandling materialsProduction (cutting, milling, finishing)Setting up machinesInspectingInventory control (raw materials and finished goods)UtilitiesTotal budgeted overhead costsOverhead Cost PoolsPurchasingHandling materialsProduction (cutting, milling, finishing)Setting up machinesInspectingInventory control (raw materials and finished goods)Utilities(a)Activity Cost PoolsDirect materialsDirect laborMachine hoursDirect labor hoursNumber of purchase ordersNumber of material movesNumber of machine setupsNumber of inspectionsNumber of componentsNumber of square feet occupied✓(b)For the last 4 years, Oriole Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100,000 machine hours are budgeted.Jeremy Nolan, owner-manager of Oriole 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.Your answer is correct.Predetermined overhead rate✓eTextbook and MediaYour answer is correct.Cost per stairway$104,100$113,000$eTextbook and Media16,000$5,500Steve 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.6080010045016,000Amount8,000$75,00082.000220,0001499.44105,000108,000126,000270,000$986,000Cost DriversCompute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.)Number of ordersNumber of movesDirect labor hoursNumber of setups.Number finspectionsNumber of componentsSquare feet occupiedEstimated Use ofCost Drivers9.866008,000per machine hour100,0001,2506,000168,000What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.)90,000Attempts: 1 of 5 usedAttempts: 1 of 5 used Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.)ActivityPurchasingHandling materialsProductionInspectingInventory control$Setting up machines $Utilities$$$$$Overhead Rateper orderper moveper D/L hourper setupper inspectionper componentper sq. ft.

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Description: Please show your work. Oriole 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.

Lets understand the basics.Overhead costs are the indirect costs which are not directly traceable…

Business

Accounting

Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Purchasing Handling materials Production Inspecting Setting up machines $ Inventory control $ Utilities $ $ $ $ Overhead Rate per order per move per D/L hour per setup per inspection per component per sq. ft.

Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Activity Purchasing Handling materials Production Inspecting Setting up machines $ Inventory control $ Utilities $ $ $ $ Overhead Rate per order per move per D/L hour per setup per inspection per component per sq. ft.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 7P: Self-Construction Olson Machine Company manufactures small and large milling machines. Selling...

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Oriole 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 2025 are as follows. Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Overhead Cost Pools Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Activity Cost Pools Direct labor For the last 4 years, Oriole Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100,000 machine hours are budgeted. Jeremy Nolan, owner-manager of Oriole Stairs Co., recently directed his accountant, Bill…
Oriole 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 2025 are as follows. Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Overhead Cost Pools Total budgeted overhead costs Activity Cost Pools Purchasing Handling materials. Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Machine hours For the last 4 years, Oriole Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2025, 100,000 machine hours are budgeted. Direct materials Direct labor Jeremy Nolan, owner-manager of Oriole Stairs Co., recently…
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Zester, Inc. uses activity-based costing to account for its carbon fiber wheels manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2021 and their allocation bases are as follows: Activity Total Budgeted Cost Allocation Base Materials Handling $4,200 Number of parts Machine Setup $2,800 Number of setups Insertion of Parts $53,000 Number of parts Finishing $81,600 Finishing direct labor hours Total $141,600 Zester, Inc. expects a total of 450 wheel sets during the year. The wheel sets are expected to use 4,000 parts, require 12 setups and consume 990 hours of finishing time.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rate for each activity. Activity Total estimated overhead cost / Total estimated quantity of the…
Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. Machine setup-hours is the only driver of manufacturing overhead costs. Light Up has a set up capacity of 960 hours. (Click the icon to view the information.) Calculate the manufacturing overhead costs budget (label it Schedule 5). Schedule 5: Manufacturing Overhead Costs Budget for the Year Ending December 31, 2020 Machine Setup Overhead Costs Total manufacturing overhead costs
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Big Boomers makes custom clubs for golfers. Most of the work is done by hand and with small tools used by craftsmen. Customers are quoted a price in advance of their clubs being manufactured. To produce clubs at a profit, management must have a thorough understanding of product costs. Jeff Ranck, manager of the business, is using direct labor hours as the activity base for allocating overhead costs. He estimated the following amounts at the beginning of 2022: Estimated total overhead. .$190,000Estimated direct labor hou .16,000 hours The following information is available for job number 17, which was started and completed in February 2022: - Direct materials used$1200- Direct labor used$600(corresponding to 50 direct labor hours) Prepare journal entries to: a. Record all the manufacturing costs charged to job 17 . b. Record the completion of job 17. c. Record the cash sale of job 17 in its entirety at a selling price of13%of its manufacturing cost. Record in a separate entry the…