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Perdon Corporation manufactures safeslarge mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of

Perdon Corporation manufactures safeslarge 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 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

B. Compare the amount of overhead allocated to one mobile sale and to one walk in safe under the tradional costing approach versus under ABC

Traditional Costing ABC

Mobile Safe $ $

Walk in

C. The total estimated manufacturing overhead of $260,000 was comprised of $160,000 for materials handling costs and $100,000 for purchasing activity cost under ABC what amount of costing are assigned to?

one mobile safe $ per unit

one walk in $ per unit

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