Traditional Product Costing Versus Activity$-$Based Costing

Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $$240,000,$ consisting of the following activity cost pools for the curre month:

$\backslash$table$[[$Activity Centers,Activity Costs,Cost Drivers,Activity Level$],[$Assembly setups,$$63,000,$Setup hours,$1,500],[$Materials handling,$33,000,$Number of moves,$300],[$Assembly$,120,000,$Assembly hours,$12,000],[$Maintenance$,24,000,$Maintenance hours,$1,200],[$Total$,$$$240,000,,]]$

Total direct labor hours used during the month were $8,000.$ Panasonic produces many different electronic products, including the following two products produced during the current month:

$\backslash$table$[[,$Model $x301,$Model Z$205],[$Units produced,$1,000,1,000],[$Direct materials costs,$$33,000,$$$33,000$