Est 7:57 PM 9 100% edugen.wileyplus.com he best experience please view on your d

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Est 7:57 PM 9 100% edugen.wileyplus.com he best experience please view on your desktop Sert by type Sort by date sisnmentProblem 17-3A (Part Level Submission) Thakin 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 2014 are as follows. Production (outting, milling, finishing) Setting up machines by Study Inventory control (raw materials and Srished goods) Total budget everhead cests For the last 4 years, Thakin Stairs Co. has been charging overhead to products on the basis of machine hours. For the year 2014, 100,000 machine hours are budgeted Jeremy Nolan, owner-manager of Thakin 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. Purchasing Handling materials Proatien (ottino. many, finishing Setting up machines Number of 1.250 6,000 Inventary control (raw maberials and Snished goeds) ber of components Square feet occupied Steve 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. Direct maberias $104,400 112.700 14,700 Number of purchase orders Number of 16,000 Number of square feet ecoupled

Explanation / Answer

NOTE : IN INVENTORY CONTROL NO. OF COMPONENTS SEEMS TO BE 160000 IF IT IS 168000 THEN DO IT ACCORDINGLY.

16000 * $ 0.84 => $ 13440

THIS IS A CORRECT ANSWER

PARTICULARS AMOUNT BASIS COST POOL PER UNIT PURCHASING 69000 NO. OF ORDER 69000/600 115 HANDLING MATERIAL 82640 NO. OF MOVES 82640/8000 10.33 PRODUCTION 214000 DIRECT LABOUR HOURS 214000/100000 2.14 SETTING UP MACHINES 96250 NO. OF SETTINGS 96250/1250 77 INSPECTING 108000 NO. OF MACHINES 108000/6000 18 INVENTORY CONTROL 134400 NO. OF COMPONENTS 134400/160000 0.84 UTILITIES 360000 SQUARE FEET OCCUPIED 360000/90000 4

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