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Oriole Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Oriole is analyzing the profitability of
Oriole Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Oriole 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 200 50 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor hours per product line 800 1,700 (a) Your answer is correct. The total estimated manufacturing overhead was $272,000. 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, eg, 12.25.) (1) One mobile safe $ 4352 per unit (2) One walk-in safe $ 3,699,20 per unit e Textbook and Media Attempts: 2 of 3 used (61) Your answer is correct. The total estimated manufacturing overhead of $272,000 was comprised of $180,000 for materials handling costs and $92,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 12.25.) What amount of materials handling costs are assigned to: (a) One mobile safe $ 540.00 per unit (b) One walk-in safe 1440,00 per unit e Textbook and Media Attempts: 2 of 3 used (62) Your answer is correct. . The total estimated manufacturing overhead of $272,000 was comprised of $180,000 for materials handling costs and $92,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 12.25.) What amount of purchasing activity costs are assigned to: (a) One mobile safe 258.75 per unit (b) One walk-in safe 805 per unit e Textbook and Media Attempts: 1 of 3 used (c) Compare the amount overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC. (Round answers to 2 decimal places, eg, 12.25.) Traditional Costing Activity-Based Costing Mobile safe $ $ Walk-in safe $ $
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