a) The total estimated manufacturing overhead of $264,000 was comprised of $167,000 for materials handling costs and $97,000 for purchasing activity costs. Under activity-based costing (ABC):

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. 42 310 Mobile Safes Walk-in Safes Units planned for production 190 Material moves per product line 270 Purchase orders per product line 340 Direct labor hours per product line 1,710 450 790