Cullumber Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Cullumber 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 (a) Your Answer Correct Answer Your answer is correct. Manufacturing overhead Mobile Safes Material handling costs 200 400 500 Purchasing activity costs 1.200 Walk-In Safes The total estimated manufacturing overhead was $307,400. 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, eg 15.25) 1. One mobile safe 2. One walk-in safe 2. What amount of purchasing activity costs are assigned to: a. One mobile safe 50 each 220 The total estimated manufacturing overhead of $307,400 was comprised of $204,600 for materials handling costs and $102,800 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 15.25) 1. What amount of materials handling costs are assigned to: a. One mobile safe 300 636 each $ each 1,700 3604 each b. One walk-in safe b. One walk-in safe each each
Cullumber Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Cullumber 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 (a) Your Answer Correct Answer Your answer is correct. Manufacturing overhead Mobile Safes Material handling costs 200 400 500 Purchasing activity costs 1.200 Walk-In Safes The total estimated manufacturing overhead was $307,400. 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, eg 15.25) 1. One mobile safe 2. One walk-in safe 2. What amount of purchasing activity costs are assigned to: a. One mobile safe 50 each 220 The total estimated manufacturing overhead of $307,400 was comprised of $204,600 for materials handling costs and $102,800 for purchasing activity costs. Under activity-based costing (ABC): (Round answers to 2 decimal places, eg. 15.25) 1. What amount of materials handling costs are assigned to: a. One mobile safe 300 636 each $ each 1,700 3604 each b. One walk-in safe b. One walk-in safe each each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mk. 226.
Transcribed Image Text:Cullumber Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual
budgeting process, Cullumber 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
(a)
Your Answer Correct Answer
✓ Your answer is correct.
Manufacturing overhead
Material handling costs $
Mobile Safes
Purchasing activity costs $
200
eTextbook and Media
400
Save for Later
500
1.200
The total estimated manufacturing overhead was $307,400. 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, eg 15.25)
2. One walk-in safe
1. One mobile safe
Walk-In Safes
a. One mobile safe
2. What amount of purchasing activity costs are assigned to:
The total estimated manufacturing overhead of $307,400 was comprised of $204,600 for materials handling costs and $102,800
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
50
each
220
300
636 each $
each
1,700
$
3604 each
$
b. One walk-in safe
b. One walk-in safe
each
each
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