Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimalplaces, e.g. 12.25.)Predetermined overhead rate. $(b)Your answer is correct.eTextbook and MediaYour answer is correct.Cost per stairway $(c1)What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.)eTextbook and MediaYour answer is correct.Calculate activity-based overhead rate for each activity. (Round answers to 2 decimal places, e.g. 12.25.)ActivityPurchasingHandling materials $ProductionInspecting(c2)Setting up machines $Inventory controlUtilities$$Total overhead assigned$$eTextbook and Media$1499.44Calculate total overhead assigned under ABC.$Overhead Rate125.0010.252.2084.0018.009.86 per machine hour0.753.00per orderper moveper D/L hourper setupper inspectionper componentAttempts: 1 of 5 usedper sq. ft.Attempts: 1 of 5 usedAttempts: 1 of 5 used 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 machinesOverhead Cost PoolsInspectingInventory control (raw materials and finished goods)UtilitiesTotal budgeted overhead costsPurchasingHandling materialsProduction (cutting, milling, finishing)Setting up machinesInspectingInventory control (raw materials and finished goods)UtilitiesActivity Cost PoolsDirect laborFor 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.Direct materialsMachine hoursDirect labor hoursNumber of purchase ordersNumber of material movesNumber of machine setupsNumber of inspectionsNumber of componentsNumber of square feet occupied$104,100$113,00016,0005,50060800100450Amount$75,00082,00016,000220,0008,000105,000108,000126,000270,000$986,000Steve 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.Cost DriversNumber of ordersNumber of movesDirect labor hoursNumber of setupsNumber of inspectionsNumber of componentsSquare feet occupiedEstimated Use ofCost Drivers6008,000100,0001,2506,000168,00090,000

Name: Compute the predetermined overhead rate using traditional costing wit
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimalplaces, e.g. 12.25.)Predetermined overhead rate. $(b)Your answer is correct.eTextbook and MediaYour answer is correct.Cost p

Predetermined overhead rate is the rate which is estimated at the beginning of the period in order…

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Accounting

✓ Your answer is correct. Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate $ (b) eTextbook and Media Your answer is correct. Cost per stairway $ What is the manufacturing cost per stairway under traditional costing? (Round answer to 2 decimal places, e.g. 12.25.) eTextbook and Media (c1) ✓ Your answer is correct. 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 (c2) $ $ $ $ eTextbook and Media 1499.44 Total overhead assigned $ Overhead Rate Calculate total overhead assigned under ABC. 125.00 10.25 2.20 84.00 18.00 9.86 per machine hour 0.75 3.00 per order per move per D/L hour per setup per inspection per component Attempts: 1 of 5 used per sq. ft. Attempts: 1 of 5 used Attempts: 1 of 5 used