Show your work. ### Oriole Stairs Co. Cost Analysis#### Overhead Cost Pools for 2025Oriole Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, handrails) permit the installation of stairways of varying lengths and widths. All are made of white oak wood. Budgeted manufacturing overhead costs for the year 2025 are as follows:| Overhead Cost Pools | Amount ||--------------------------------------------|-----------|| Purchasing | $75,000 || Handling materials | $82,000 || Production (cutting, milling, finishing) | $220,000 || Setting up machines | $105,000 || Inspecting | $108,000 || Inventory control (raw materials and finished goods) | $126,000 || Utilities | $270,000 || **Total budgeted overhead costs** | **$986,000** |For the last 4 years, Oriole Stairs Co. has been charging overhead to products based on machine hours. For the year 2025, 100,000 machine hours are budgeted.#### Activity-Based CostingJeremy 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 identified the following cost drivers and their usage for the previously budgeted overhead cost pools:| Activity Cost Pools | Cost Drivers | Estimated Use of Cost Drivers ||----------------------------------|-------------------------|--------------------------------|| Purchasing | Number of orders | 600 orders || Handling materials | Number of moves | 8,000 moves || Production (cutting, milling, finishing) | Direct labor hours | 100,000 hours || Setting up machines | Number of setups | 1,250 setups || Inspecting | Number of inspections | 6,000 inspections || Inventory control (raw materials and finished goods) | Number of components | 168,000 components || Utilities | Square feet occupied | 90,000 square feet |#### Cost Estimation for Community Builders, Inc.Steve Hannon, sales manager, has received an order ### Predetermined Overhead Rate Calculation#### Compute the Predetermined Overhead RateTo compute the predetermined overhead rate using traditional costing with machine hours as the basis, follow the instructions below. Note that the answer should be rounded to 2 decimal places (e.g., 12.25).**Predetermined Overhead Rate:**\[ \text{Predetermined Overhead Rate} = \$9.86 \text{ per machine hour} \]✔️ Your answer is correct.---### Manufacturing Cost Per Stairway#### (b) Traditional CostingCalculate the manufacturing cost per stairway under traditional costing. The answer should be rounded to 2 decimal places (e.g., 12.25).**Cost per Stairway:**\[ \text{Cost per Stairway} = \$ \text{ } \]---#### Additional AttemptsUsers can attempt to calculate these values up to 5 times.**Current Attempts:**- Attempts used: 1 of 5For more detailed explanations and theories, refer to the eTextbook and Media provided.

Your answer is correct. Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) (b) Predetermined overhead rate $ eTextbook and Media 9.86 per machine hour Cost per stairway $ Attempts: 1 of 5 used What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.)

Your answer is correct. Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, e.g. 12.25.) (b) Predetermined overhead rate $ eTextbook and Media 9.86 per machine hour Cost per stairway $ Attempts: 1 of 5 used What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 63E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...

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Sandhill Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Sandhill: Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Your answer is correct. Time Charges Material Loading Charges Rate charged $192.240 $ 56,960 28,480 $277,680 The company wants a $40 profit margin per hour of labour and a 20% profit margin on parts. It has budgeted for 7.120 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $366,000. Calculate the rate charged per hour of labour. $40,260 11,895 79 per hour 18,300 $70,455
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Computing product costs in an activity-based costing system Turbo Champs Corp. uses activity-based costing to account for its motorcycle manufacturing process. Company managers have identified three supporting manufacturing activities: inspection, machine setup, and machine maintenance. The budgeted activity costs for 2018 and their allocation bases are as follows: Turbo Champs expects to produce 20 custom-built motorcycles for the year. The motorcycles are expected to require 100 inspections, 40 setups, and 100 machine hours. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each motorcycle.
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. Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs Activity Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines. 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. Inspecting Inventory control (raw materials and finished goods) Utilities Jeremy Nolan, owner-manager of Oriole Stairs Co., recently directed his accountant, Bill Seagren, to…
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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 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…
Indigo Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2025 is available for Indigo tab Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs caps lock (a) Your answer is correct. Labor rate esc Compute the rate charged per hour of labor. ! 1 Q The company desires a $40 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,400 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2025 will be $416,000. A $ 22 N Ne @ 2 * W $251,600 S Time Charges $318,200 83 @ * # 3 59,200 X 7,400 26 per hour 80 E D A GA $ 4 Material Loading Charges $40,700 20,800 $73,320 11,820 888 C R ar do % 5 F T V 6 G Y & VI A 7 B H U 8 J N ( M
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JOB COSTING II GLOBAL CAMPUS Discussion Question Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 222. Job stats are as follows: Direct materials cost Direct labour cost Direct labour hours $173,250 $240,000 500 hours Special Design Cost Distribution quote from haulage company Units of product produced $8,750 $21,700 400 cartons a) Compute Miguel's Manufacturing Company predetermined manufacturing overhead rate for 2023. b) How much manufacturing overhead was allocated to Job #222? c) Calculate the total cost & quotation price of Job #222, given that a…
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Computing product costs in an activity-based costing system Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers hate identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each bumper.
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…