Sheridan Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sheridan 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 following information relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line Manufacturing overhead $ eTextbook and Media Material handling costs $ Mobile Safes 200 Purchasing activity costs $ 350 (c) 500 900 The total estimated manufacturing overhead was $270,000. 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. 15.25.) Walk-In Safes 1. One mobile safe 50 a. One mobile safe 200 100 1.600 486 each $ 2. What amount of purchasing activity costs are assigned to: The total estimated manufacturing overhead of $270,000 was comprised of $165,000 for materials handling costs and $105,000 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: a. One mobile safe 525 each $ 2. One walk-in safe 437.50 each $ 3456 each b. One walk-in safe 1200 each b. One walk-in safe Attempts: 2 of 3 used 350 each 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. 15.25.)
Sheridan Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sheridan 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 following information relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line Manufacturing overhead $ eTextbook and Media Material handling costs $ Mobile Safes 200 Purchasing activity costs $ 350 (c) 500 900 The total estimated manufacturing overhead was $270,000. 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. 15.25.) Walk-In Safes 1. One mobile safe 50 a. One mobile safe 200 100 1.600 486 each $ 2. What amount of purchasing activity costs are assigned to: The total estimated manufacturing overhead of $270,000 was comprised of $165,000 for materials handling costs and $105,000 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: a. One mobile safe 525 each $ 2. One walk-in safe 437.50 each $ 3456 each b. One walk-in safe 1200 each b. One walk-in safe Attempts: 2 of 3 used 350 each 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. 15.25.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 63E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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