Under activity-based costing (ABC), the amounts of materials handling costs assigned to the following units are:
(a) One mobile safe $210 per unit .
(b) One walk-in safe $168 per unit.
<h3>What is activity-based costing?</h3>
Activity-based costing is the costing method that assigns overhead and indirect costs to products and services based on consumption of activities.
<h3>Data and Calculations:</h3>
Materials handling costs = $168,000
Purchasing activity costs = $96,000
Total estimated manufacturing overhead = $264,000 ($168,000 + $96,000)
The following figures are assumed:
<u>Activities</u>:
Materials handling cost $168,000
Total hours of materials handling = 40,000 hours
Activity rate = $4.20 ($168,000/40,000) per hour
Purchasing activity cost = $96,000
Number of units purchased = 30,000
Activity rate = $3.20 ($96,000/30,000)
<u>Consumption of activities</u>:
Material Handling hours Number of Units used
Mobile safe per unit 50 hours 3 units
Walk-in safe per unit 40 hours 2 units
<u>Overhead assigned</u>:
Material Handling
Mobile safe per unit 50 hours x $4.20 = $210
Walk-in safe per unit 40 hours x $4.20 = $168
Thus, under activity-based costing (ABC), the amounts of materials handling costs assigned to the following units are as indicated above.
Learn more activity-based costing at brainly.com/question/6654166
