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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

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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 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. Activity Cost Pools and Drivers Activity 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 was $264,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to one mobile safe and one walk- in safe? Hint: Calculate predetermined overhead rate using the traditional costing method. Then, calculate cost allocated to each safe type and then divide the cost by the number of units planned for production Round answers to 2 decimal places, e.3. 12.25. When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10.000 or 10,000.00 without any dollar sign. Responses - Unit Costs One Mobile Safe $ per unit One Walk-in Safe $ 3.536 per unit 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. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10.000, you should be typing 10.000 or 10,000.00 without any dollar What amount of materials handling costs are assigned to one mobile safe and one walk-in safe? Hint: Calculate predetermined overhead rate using the ABC method. Then, calculate cost allocated to each safe and then divide the cost by the number of units planned for production. Calculate the costs applying materials handling costs (by materials moves) only. Responses - Unit Costs One Mobile Safe per unit One Walk-in Safe per unit

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