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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
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 assigned to each product line. The following information relates to overhead. Mobile Safes Walk-In Safes Units planned for production 250 50 Material moves per product line 450 280 Purchase orders per product line Direct labor hours per product line 400 600 800 1,600 Compare the amount of overhead assigned 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. 15.25.) Traditional Costing Activity-Based Costing Mobile Safe $ Walk-in Safe $ $
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