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Exercise 18-5 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
Exercise 18-5 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 amount of overhead to be allocated to each preduct line. The information shown below relates to overhead the profitability of its two products. Part of this analysis involves estimating Units planned for production Matenal moves per product line Purchase orders per product line Direct labor hours per product line Mobile Safes 190 310 450 790 Walk in Safes 42 270 340 1,710 traditional casting (which assigns overhead on the basis of direct labar hours), what amount of manufacturing overhead costs are assigned to: (Round anssvers to 2 decimal places, e.g. 12.25-) (1) one mobile safe s unit (2) One walk-n safe per unit casts and s97,000 for purchasing activity costs. urchasing activity costs. Under activity-based costing (ABC): (Round intermediate computations and act The total estimated manufacturing overhead of $264,000 was comprised of $167,000 far materials handing costs and $97,000 for p final answers to 2 decirmal places, eg. 12.25.) What amount of materials handing costs are assigned to: (a) One mobile safe (b) One walk in safe unit
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