Perdon Corporation manufactures safes—large mobile safes, andlarge walk-in stationary bank safes. As part of its annualbudgeting process, Perdon is analyzing the profitability of its twoproducts. Part of this analysis involves estimating the amount ofoverhead to be allocated to each product line. The informationshown below relates to overhead.
| | Mobile Safes | | Walk-in Safes |
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Units planned for production | | 200 | | 50 |
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Material moves per product line | | 300 | | 200 |
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Purchase orders per product line | | 450 | | 350 |
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Direct labor hours per product line | | 800 | | 1,700 |
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The total estimated manufacturing overhead was $ 276,000. Undertraditional costing (which assigns overhead on the basis of directlabor hours), what amount of manufacturing overhead costs areassigned to: (Round answers to 2 decimal places, e.g.12.25.)
(1) | | One mobilesafe | | $441.6 | per unit |
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(2) | | One walk-insafe | | $3752.6 | per unit |
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The total estimated manufacturing overhead of $ 276,000 wascomprised of $ 176,000 for materials handling costs and $ 100,000for 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 mobilesafe | | $528 | per unit |
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(b) | | One walk-insafe | | $1408 | per unit |
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The total estimated manufacturing overhead of $ 276,000 wascomprised of $ 176,000 for materials handling costs and $ 100,000for purchasing activity costs. Under activity-based costing (ABC):(Round answers to 2 decimal places, e.g.12.25.)
What amount of purchasing activity costs are assigned to:
(a) | | One mobilesafe | | $281.25 | per unit |
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(b) | | One walk-insafe | | $875 | per unit |
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*already answered the above problems- need help withthis part:
Compare the amount of overhead allocated to one mobilesafe and to one walk-in safe under the traditional costing approachversus under ABC. (Round answers to 2 decimal places, e.g.12.25.)
| | Traditional Costing | | Activity-Based Costing |
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Mobile safe | | $ ?????? | | $ ?????? |
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Walk-in safe | | $ ?????? | | $ ?????? |
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