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Cullumber Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Cullumber is analyzing the profitability of
Cullumber Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Cullumber 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 following information relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) Manufacturing overhead Mobile Safes $ 200 400 500 1,200 Walk-In Safes 1. One mobile safe 50 220 The total estimated manufacturing overhead was $307,400. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 15.25.) 300 1,700 each $ 2. One walk-in safe each
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