Q2: 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		210		48
Material moves per product line		290		240
Purchase orders per product line		460		360
Direct labor hours per product line		810		1,710

a.)The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) (1)One mobile safe $______ per unit (2)One walk-in safe $______ per unit b.)The total estimated manufacturing overhead of $260,000 comprised $160,000 for materials handling cost and $100,000 for purchasing activity costs. Under activity-based costing (ABC): (1) What amount of materials handling costs are assigned to: (a)One mobil safe? (b)One walk-in safe? (2) What amount of purchasing activity costs are assigned to: (a)One mobil safe? (b)One walk-in safe? c.)Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC.