Question

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.

Q1.The total estimated manufacturing overhead was $262,400.Under traditional costing (which assigns overhead on the basis ofdirect labor hours), what amount of manufacturing overhead costsare assigned to: (Round intermediate calculations andanswers to 2 decimal places, e.g. $12.25.)
(1). One mobile safe $

(2).One walk-in safe $

Q2.The total estimated manufacturing overhead of $262,400 wascomprised of $165,900 for material handling costs and $96,500 forpurchasing activity costs. Under activity-based costing (ABC):(Round intermediate calculations and answers to 2decimal places, e.g. $12.25.)
(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 assignedto:
(a).One mobile safe $

(b).One walk-in safe $

Q3.Compare the amount of overhead allocated to one mobile safeand to one walk-in safe under the traditional costing approachversus under ABC. (Round answers to 2 decimal places,e.g. $12.25.)

Traditionalcosting Activity-based costing

mobile safe $ $

walk-in safe $ $

<Here is the chart.>!!!!plaese see your fomula!!!!

Mobile Safes		Walk-In Safes
Units planned for production		210		50
Material moves per product line		310		250
Purchase orders per product line		450		360
Direct labor hours per product line		790		1,700