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Perdon Corporation manufactures safes-large mobile sates, and large walk-in stationary bank safes. As part of its annual budg
The total estimated manufacturing overhead was $264,000. Under traditional costing (which assigns overhead on the basis of di
The total estimated manufacturing overhead of $264,000 was comprised of $168,000 for materials handling costs and $96,000 for
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Answer #1

Under traditional costing

One mobile safe $264000/(800+1700)*800 =$84,480 , per unit 84480/200 = 422.4 per unit

One walk in safe 264000/(800+1700)*1700=$179,520, per unit 179520/50 =3590.4 per unit

Under ABC system

Activity rate = 168000/ 300+200 =336 per material moves

One Mobile safe (300*336) =$100,800

One walk safe = 200*336 =67,200

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