Under activity-based costing

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Perdon Corporation manufactures safes—large 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 Units planned for production mobile safe 200 walk-in safe 60 Material moves per product line mobile safe 310 walk in safe 200 Purchase orders per product line mobile safe 450 walk in safe 340 Direct labor hours per product line mobile 810 walk in 1,700 The total estimated manufacturing overhead of $260,300 was comprised of $173,800 for material handling costs and $86,500 for purchasing activity costs. Under activity-based costing (ABC) 1 What amount of material handling costs are assigned to a) one mobile safe b) one walk in safe 2. What amount of purchasing activity costs are assigned to a) one mobile safe b) one walk in safe Compare the amount of overhead allocated to one mobile safe and to one walk-in safe under the traditional costing approach versus under ABC mobile safe traditional costing and abc walk in safe traditional costing and abc

Reference no: EM13749154

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