Waterway Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Waterway 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 Units planned for production 200 50 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor hours per product line 800 1,700 (a) The total estimated manufacturing overhead was $272,000. 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 +A $ per unit (2) One walk-in safe $ per unit eTextbook and Media Save for Later Last saved 32 minutes ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Waterway Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual
budgeting process, Waterway 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
Units planned for production
200
50
Material moves per product line
300
200
Purchase orders per product line
450
350
Direct labor hours per product line
800
1,700
(a)
The total estimated manufacturing overhead was $272,000. 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
+A
$
per unit
(2)
One walk-in safe
$
per unit
eTextbook and Media
Save for Later Last saved 32 minutes ago.
Attempts: 0 of 3 used
Submit Answer
Saved work will be auto-submitted on the due date. Auto-
submission can take up to 10 minutes.
Transcribed Image Text:Waterway Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Waterway 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 Units planned for production 200 50 Material moves per product line 300 200 Purchase orders per product line 450 350 Direct labor hours per product line 800 1,700 (a) The total estimated manufacturing overhead was $272,000. 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 +A $ per unit (2) One walk-in safe $ per unit eTextbook and Media Save for Later Last saved 32 minutes ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes.
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