Question
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 |
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): (Round answers to 2 decimal places, e.g. 12.25.) What amount of purchasing activity costs are assigned to:
(a) | One mobile safe | $ enter a dollar amount per unit rounded to 2 decimal places | per unit | ||
---|---|---|---|---|---|
(b) | One walk-in safe | $ enter a dollar amount per unit rounded to 2 decimal places | per unit |
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