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Pardon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Pardon la analyzing the profitability of
Pardon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Pardon la analyzing the profitability of its tivo products. Part of this analyals 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 Unita planned for production 200 05 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor hours per producti 800 1,700 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.) (2) One mobile safe $ (2) One walk-in safe $ eTextbook and Media perunt per unit 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 coating (ABC): (Round answers to 2 decimal places, eg. 12.25) What amount of materials handling costs are assigned to: One mobile safe $ 001 One walk-in safe $ *Textbook and Media per unit per unit 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 coating (ABC): (Round answers to 2 decimal places, e.g.12.25) What amount of purchasing activity costs are assigned to: (a) One mobile safe $ One walk-in safe $ eTextbook and Media per unit per unit Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional coating approach versus under ABC (Round answers to 2 decimal places, eg. 12.25) Traditional Costing Activity-Based Costing Moblie safe Walk-Insafe $ $
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