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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
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 allocated to each product line. The information shown below relates to overhead. The total estimated manufacturing overhead was $269,000. Under traditional costing (which assigns overhead on the basis of direct-labor hours), what amount of manufacturing overhead costs are assigned to: (Round intermediate calculations and answers to 2 decimal places,e.g,$ 12.25.) The total estimated manufacturing overhead of $269,000 was comprised of $169,300 for material-handling costs and $99,700 for purchasing activity costs. Under activitybased costing (ABC): (Round intermediate calculations and answers to 2 decimal places, e.g. $12.25.) What amount of amterial handling costs assigned to: What amount of purchasing activity aosts are assigned to: 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.)
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