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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $
Purchasing activity costs $
(c)
Mobile Safes
Mobile Safe
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.)
Well, in fata
200
$
350
९
500
900
Walk-In Safes
1. One mobile safe
2. What amount of purchasing activity costs are assigned to:
Traditional Costing
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
50
200
a. One mobile safe
100
1,600
486 each $
$
525 each
$
437.50 each $
2. One walk-in safe
3456 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.)
Activity-Based Costing
b. One walk-in safe
1200 each
b. One walk-in safe
Attempts: 2 of 3 used
350 each
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