Sheffield Corporation manufactures safes—large mobile
safes, and large walk-in stationary bank safes. As part of its
annual budgeting process, Sheffield is analyzing the
profitability of its two products. Part of this analysis involves
estimating the amount of overhead to be assigned to each product
line. The information shown below relates to overhead.
Mobile Safes
Walk-in Safes
The total estimated manufacturing overhead was $264,000. 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
$enter a dollar amount per unit
(2)
One walk-in safe
$enter a dollar amount per unit
eTextbook and Media
The total estimated manufacturing overhead of $264,000 was
comprised of $164,000 for materials handling costs and
$100,000 for purchasing activity costs. Under activity-based
costing (ABC): (Round answers to 2 decimal places,
e.g. 12.25.)
What amount of materials handling costs are assigned to:
(a)
One mobile safe
$enter a dollar amount per unit
(b)
One walk-in safe
$enter a dollar amount per unit
eTextbook and Media
The total estimated manufacturing overhead of $264,000 was
comprised of $164,000 for materials handling costs and
$100,000 for purchasing activity costs. Under activity-based
costing (ABC): (Round answers to 2 decimal places,
e.g. 12.25.)
What amount of purchasing activity costs are assigned to:
(a)
One mobile safe
$enter a dollar amount per unit
(b)
One walk-in safe
$enter a dollar amount per unit
eTextbook and Media
Compare the amount of overhead assigned to one mobile safe and
to one walk-in safe under the traditional costing approach versus
under ABC. (Round answers to 2 decimal places,
e.g. 12.25.)
Traditional Costing
Activity-Based Costing
Mobile safe
$enter a dollar amount
$enter a dollar amount
Walk-in safe
$enter a dollar amount
$enter a dollar amount
Sheffield Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its ann
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