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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 210 50 Material moves per product line 290 230 Purchase orders per product line 450 350 Direct labor hours per product line 800 1,700 The total estimated manufacturing overhead was $277,400. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round intermediate calculations and answers to 2 decimal places, e.g. $12.25.) (1) One mobile safe $ (2) One walk-in safe $ LINK TO TEXT The total estimated manufacturing overhead of $277,400 was comprised of $177,400 for material handling costs and $100,000 for purchasing activity costs. Under activity-based costing (ABC): (Round intermediate calculations and answers to 2 decimal places, e.g. $12.25.) (1) What amount of material handling costs are assigned to: (a) One mobile safe $ (b) One walk-in safe $ (2) What amount of purchasing activity costs are assigned to: (a) One mobile safe $ (b) One walk-in safe $ LINK TO TEXT Compare the amount of 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, e.g. $12.25.) Traditional Costing Activity-Based Costing Mobile safe $ $ Walk-in safe $ $

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