Oriole Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components...

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Accounting

Oriole 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 2020 are as
follows.
For the last 4 years, Oriole Co, has been charging overhead to products on the basis of machine hours. For the year 2020,100,000 machine hours are budgeted.
Jeremy Nolan, owner-manager of Oriole Co, recently directed his accountant, Bill Seagren, to implement the activity-based costing system that he has
cverhead cost pools.
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 stainways.
Compute the predetermined overhead rate using traditional costing with machine hours as the basis. (Round answer to 2 decimal ploces, eg.12.25.)
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