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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 $264,000. Under traditional costing (Which assigns overhead on the basis direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimol places, e.g. 12 . (1) One mobile safe $ (2) Onewalk-in safe $ 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. 12.25.) What amount of materials handling costs are assigned to: (a) One mobile safe $ per unit (b) Onewalk-in safe \$ Derunit The total estimated manufacturing overhead of $264,000 was comprised of $168,000 for materials handiling costs and $96,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal ploces, e.g. 12.25.) What amount of purchasing activity costs are assigned to: (a) Onemobilesafe $ (b) Onewalk-insafe $ perunit 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 ploces, e.g. 12.25)
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