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ach of the Operating BAS (LO 1, 2), AN Perdon Corporation manufactures safes-large mobile safes, and large walk-in sta diary bank safes. As part of

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ach of the Operating BAS (LO 1, 2), AN Perdon Corporation manufactures safes-large mobile safes, and large walk-in sta diary bank safes. As part of its annual budgeting process. Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each oroduct line. The information shown below relates to overhead. Assign overhead costing and ABC ng either ad on a Walk-In Safes Mobile Safes 200 300 50 d to be ng and 3 (cost cutting elated Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line 450 200 350 1,700 800 ine Instructions a. The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: 1. One mobile safe? 2. One walk-in safe? b. The total estimated manufacturing overhead of $260,000 was comprised of $160,000 for materials handling costs and $100,000 for purchasing activity costs. Under activity-based costing (ABC): 1. What amount of materials handling costs are assigned to: a. One mobile safe? b. One walk-in safe? 2. What amount of purchasing activity costs are assigned to: a. One mobile safe? b. One walk-in safe? c. Compare the amount of overhead assigned to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC

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