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 profitability of its two products. Part of this analysis involves estimating the amount of overhead to be alloccated to each product line. The information shown below relates to overhead.

Activity Cost Pools and Drivers

Activity	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

The total estimated manufacturing overhead was $264,000. under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to one mobile safe and one walk-in safe?

Hint: Calculate predetermined overhead rate using the traditional costing method. then, calculate the cost allocated to each safe type and then divide the cost by the number of units planned for production.

Responses - Unit Costs

One Mobile Safe	$ per unit
One Walk-in Safe	$ per unit

The total estimated manufacturing overhead of $264,000 was comprised of $168,000 for materials handling costs and $96,000 for purchasing activity costs. Under activity-based costing (ABC):

What amount of materials handling costs are assigned to one mobile safe and one walk-in safe?

Hint: Calculate predetermined overhead rate using the ABC method. Then, calculate the cost allocated to each safe and then divide the cost by the number of units planned for production. Calculate the costs applying materials handling costs (by materials moves) only.

Responses - Unit Costs

One Mobile Safe	$ per unit
One Walk-in Safe	$ per unit