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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. Mobile Safes Walk-in Safes Units planned for production 190 49 290 210 Material moves per product line Purchase orders per product line 440 350 Direct labor hours per product line 810 1,690 The total estimated manufacturing overhead of $263,000 was comprised of $169,000 for materials handling costs and $94,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 12.25.) What amount of materials handling costs are assigned to: (a) One mobile safe ta 51.59 per unit (b) One walk-in safe $ 144.86 per unit The total estimated manufacturing overhead of $263,000 was comprised of $169,000 for materials handling costs and $94,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 12.25.) What amount of purchasing activity costs are assigned to: (a) One mobile safe $ per unit (b) One walk-in safe $ per unit X Your answer is incorrect. 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 $ 422.60 $ 706.20 Walk-in safe $ 4331.51 $ 2946,44 e Textbook and Media Save for Later Attempts: 1 of 3 used Submit
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