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Exercise 18-6 Perdon Corporation manufactures safes arge mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing
Exercise 18-6 Perdon Corporation manufactures safes arge 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 allocated to each product line. The information shown below relates to overhead Mobile Safes Walk-in safes Units planned for production 210 40 Material moves per product line 300 230 Purchase orders per product line 450 350 800 Direct labor hours per product line 1,710 EX Your answer is incorrect. Try again. (a) The total estimated manufacturing overhead was $270,700. Under traditional costing (which assigns overhead on the basis of direct-labor hours), what amount of manufacturing overhead costs are assigned to: (Round intermediate calculations and answers to 2 decimal places, e.g. $12.25.) per unit. (1) Mobile safe per unit. (2) Walk-in safe (b) The total estimated manufacturing overhead of $270,700 was comprised of $163,100 for material-handling costs and $107,600 for purchasing activity costs. Under activitybased costing (ABC): Round intermediate calculations and
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