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Perdon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budg

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Answer #1

Activity rate for materials handling costs

= 180,000/(300+200) = 180,000/500

= 360 per move

Material handling costs allocated to

Mobile safe = 360*300 = 108,000

Walk in safe = 360*200 = 72,000

One mobile safe (108,000/200) 540 per unit
One walk in safe (72,000/50) 1440 per unit

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