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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 information shown below relates to overhead. Mobile Safes Walk-In Safes Units planned for production 200 50 Material moves per product line 400 200 Purchase orders per product line 400 100 Direct labour hours per product line 600 1,700 Your answer is correct. The total estimated manufacturing overhead was $243,800. 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 2. One walk-in safe Manufacturing overhead $ 318 each $ 3604 each The total estimated manufacturing overhead of $243,800 was composed of $192,000 for material handling costs and $51,800 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 15.25.) 1. What amount of material handling costs are assigned to: a. One mobile safe Material handling costs $ each 2. What amount of purchasing activity costs are assigned to: a. One mobile safe Purchasing activity costs EA b. One walk-in safe each b. One walk-in safe each $ each

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