Exercise 17-5 (Part Level Submission) Perdon Corporation manufactures safes-larg

Question

Exercise 17-5 (Part Level Submission) 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. Walk-in Safes 51 250 340 1,710 Mobile Safes Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line 210 310 450 810 The total estimated manufacturing overhead was $276,000. 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,e.g.12.25.) (1) One mobile safe (2) One walk-in safe s per unit per unit

Explanation / Answer

Working:

1 One mobile-safe $422.45 per unit 2 One walk-in safe $367.23 per unit

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