Sunland Corporation manufactures safes—large mobile safes,and large walk-in stationary bank safes. As part of its annualbudgeting process, Sunland is analyzing the profitabilityof its two products. Part of this analysis involves estimating theamount of overhead to be assigned to each product line. Thefollowing information relates to overhead.
Mobile Safes
Walk-In Safes
Units planned for production
200
50
Material moves per product line
500
240
Purchase orders per product line
400
200
Direct labor hours per product line
1,300
1,700
Sunland Corporation Manufactures Safes Large Mobile Safes And Large Walk In Stationary Bank Safes As Part Of Its Annua 1 (79.26 KiB) Viewed 10 times
The total estimated manufacturing overhead of $330,000 was comprised of $222,000 for materials handling costs and $108,000 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, e.g. 15.25.) 1. What amount of materials handling costs are assigned to: Material handling costs a. One mobile safe Purchasing activity costs 2. What amount of purchasing activity costs are assigned to: each a. One mobile safe each $ $ b. One walk-in safe b. One walk-in safe each each
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