Question

Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line Mobile Safes 200 300 450 800 Walk-in Safes 50 200 350 1.700 (a) Your answer is correct The total estimated manufacturing overhead was $268,000. 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, es 12.25.) (1) $ ASUS 428.80 per unit One mobile safe One walk in safe (2) $ 361480 per unit eTextbook and Media Attempts: 2 of 7 used (61) Your Answer Correct Answer (Used) x Your answer is incorrect The total estimated manufacturing overhead of $268,000 was comprised of $172,000 for materials handling costs and $96,000 for purchasing activity costs. Under activity based costing (ABC): (Round answers to 2 decimal places, eg. 12.25.) What amount of materials handling costs are assigned to One mobile safe $ 57333 per unit One walk-in sale $ 182240 per unit

Answer 1

Amount of materials handling assigned to :

One mobile safe = 172000 * 300/500 = 103200 / 200 = 516 per unit

One walk in safe = 172000 * 200/500 = 68800 / 50 = 1376 per unit

Answer to part c

	Traditional costing	Activity based costing
Mobile safe	428.80	786 [ 516+270]
Walk in safe	3644.80	2216 [1376+840]