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    tubist's Avatar
    tubist Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Oct 30, 2015, 10:11 AM
    Accounting,Amount of manufacturing overhead costs
    Please help me for this question; I cannot figure it out; I feel veryy confued about it
    Thxx

    Perdon Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be allocated to each product line. The information shown below relates to overhead.

    Mobile Safes Walk-in Safes
    Units planned for production 210 48
    Material moves per product line 290 240
    Purchase orders per product line 460 360
    Direct labor hours per product line 810 1,710

    The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: [COLOR=#ff0000](Round answers to 2 decimal places, e.g. 12.25.)[/COLOR]
    (1) One mobile safe $ per unit
    (2) One walk-in safe $ per unit
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Oct 30, 2015, 10:11 AM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    tubist's Avatar
    tubist Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Oct 30, 2015, 10:21 AM
    Actually I am confused about the traditional method, Prof did not talk about very much.
    However, I think that I have to do that total estimated manufacturing overhead $260,000 is divided by 2520 (810+1710) so 103.17.

    Quote Originally Posted by Curlyben View Post
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    Actually I am confused about the traditional method, Prof did not talk about very much.
    However, I think that I have to do that total estimated manufacturing overhead $260,000 is divided by 2520 (810+1710) so 103.17
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