Assign overhead using traditional costing and ABC. E5.22 (LO 1, 2) Perdon Corporation manufactures safes-large mobile safes and large walk-in stationary 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 product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labour hours per product line Instructions Mobile Safes Walk-In Safes 200 50 300 200 450 350 800 1,700 a. The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labour hours), what amount of manufacturing overhead costs are assigned to (1) one mobile safe and (2) one walk-in safe? b. The total estimated manufacturing overhead of $260,000 was composed of $160,000 for material handling costs and $100,000 for purchasing activity costs. Under activity-based costing (ABC): 1. What amount of material handling costs is assigned to (1) one mobile safe and (2) one walk-in safe? 2. What amount of purchasing activity costs is assigned to (1) one mobile safe and (2) one walk-in safe? c. Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC.