Sheffield 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 $2022$ are as follows.Jeremy Nolan, owner$-$manager of Sheffield 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.

Sheffield 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.

$\backslash$table$[[,$Amount$],[$Purchasing$,$$$75,000$

$\backslash$table$[[,$Cost Drivers,,Cost Drivers$],[$Purchasing$,$Number of orders,$600,],[$Handling materials,Number of moves,,$8,000],[$Production $($cutting$,$ milling, finishing$),$Direct labor hours,$100,000,],[$Setting up machines,Number of setups,$1,250,],[$Inspecting$,$Number of inspections,$6,000,],[$Inventory control $($raw materials and finished goods$),$Number of components,$168,000,],[$Utilities$,$Square feet occupied,$90,000,]]$

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.

$\backslash$table$[[$Direct materials,$$104,000$