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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
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 assigned to each product line. The following information relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) Mobile Safes Manufacturing overhead $ 200 500 400 1,300 Walk-In Safes 1. One mobile safe 50 240 The total estimated manufacturing overhead was $330,000. 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. 15.25.) each 200 1,700 2. One walk-in safe each
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