Perdon Corporation manufactures safes—large mobile safes, andlarge walk-in stationary bank safes. As part of...

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Accounting

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
Units planned forproduction 200 50
Material moves perproduct line 300 200
Purchase orders perproduct line 450 350
Direct labor hoursper product line 800 1,700
B. Compare the amount of overhead allocated to one mobile saleand to one walk in safe under the tradional costing approach versusunder ABC
Traditional Costing ABC
Mobile Safe $ $
Walk in
C. The total estimated manufacturing overhead of $260,000 wascomprised of $160,000 for materials handling costs and $100,000 forpurchasing activity cost under ABC what amount of costing areassigned to?
one mobile safe $ per unit
one walk in $ per unit

	Mobile Safes	Walk-in Safes
Units planned forproduction	200	50
Material moves perproduct line	300	200
Purchase orders perproduct line	450	350
Direct labor hoursper product line	800	1,700

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4.2 Ratings (673 Votes)

B The Amount of Total Manufacturing overhead allocated to one mobile sale and to one walk in safe under the traditional costing approach Total Manufacturing overhead assigned to Mobile Safes Total Manufacturing overhead Direct labour hours of See Answer

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In: AccountingPerdon Corporation manufactures safes—large mobile safes, andlarge walk-in stationary bank safes. As part of its...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 SafesWalk-in SafesUnits planned forproduction20050Material moves perproduct line300200Purchase orders perproduct line450350Direct labor hoursper product line8001,700B. Compare the amount of overhead allocated to one mobile saleand to one walk in safe under the tradional costing approach versusunder ABCTraditional Costing ABCMobile Safe $ $Walk inC. The total estimated manufacturing overhead of $260,000 wascomprised of $160,000 for materials handling costs and $100,000 forpurchasing activity cost under ABC what amount of costing areassigned to?one mobile safe $ per unitone walk in $ per unit