Question 9 of 14 -73 Sunland Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sunland 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 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: (Round answers to 2 decimal places, es. 12.25.) (1) One mobile safe $ per unit (2) One walk-in safe S per unit back and Media Question 9 of 14 -13 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 materials handling costs are assigned to: (a) One mobile safe $ per unit (b) One walk-in safe $ per unit e Textbook and Media 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, eg. 12.25.) What amount of purchasing activity costs are assigned to (a) One mobile safe $ per unit Question 9 of 14 -13 What amount of purchasing activity costs are assigned to: (a) One mobile safe $ per unit (b) One walk-in safe $ per unit e Textbook and Media 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, eg, 12.25.) Traditional Costing Activity-Based Costing Mobile safe $ $ Walk-in safe $ Question 10 of 14 -13 Crane, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $72,750 were estimated. An analysis of estimated overhead costs reveals the following activities. 1. 2. Activities Materials handling Machine setups Quality inspections Cost Drivers Number of requisitions Number of setups Number of inspections Total Cost $30,000 23,750 19.000 $72.750 3. The cost driver volume for each product was as follows. Cost Drivers Number of requisitions Number of setups Number of inspections Instruments 375 175 Gauges 625 Total 1.000 300 475 225 250 475 Determine the overhead rate for each activity, Question 10 of 14 -13 III Determine the overhead rate for each activity. Overhead Rate Materials handling $ per requisition Machine setups $ per setup Quality inspections $ per inspection e Textbook and Media Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round per unit answers to 2 decimal places, eg. 12.25.) Instruments Gauges Total cost assigned Overheadsester Unit Question 10 of 14 -13 e Textbook and Media Assign the manufacturing overhead costs for April to the two products using activity-based costing. (Round per unit answers to 2 decimal places, eg. 12.25.) Instruments Total cost assigned Gauges $ Overhead cost per Unit $
