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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
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 $1,591,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Assembly setups $ 330,000 Setup hours Materials handing 162,000 Number of moves Assembly 900,000 Assembly hours Maintenance 199,000 Maintenance hours Total $1,591,000 Activity Level 2,000 600 18,000 1,990 Total direct labor hours used during the month were 14,800. Panasonic produces many different electronic products, including the following two products produced during the current month: Model X301 Model Z205 Units produced 3,500 3,500 Direct materials costs $34,000 $34,000 Direct labor costs $29,000 $29,000 Direct labor hours 700 700 Setup hours 60 120 Materials moves Assembly hours 900 Maintenance hours 20 900 80 Required a. Calculate the total per-unit cost of each model using direct labor hours to assign manufacturing overhead to products. Round answers for unit cost to two decimal places, if applicable. X301Z205 Direct materials $ 0 $ Direct labor 0 0 Overhead 0 0 Total cost $ 0 $ 0 Units 0 Unit cost $ 0 $ 0 b. Calculate the total per-unit cost of each model using activity-based costing to assign manufacturing overhead to products. Round answers for unit cost to two decimal places, if applicable. X301 Z205 Total direct materials costs $ Total direct labor costs Overhead costs: Assembly setup 0 0 Materials handling 0 Assembly Maintenance 0 0 Total costs $ 0 $ 0 Units produced 0 0 Unit cost $ 0 $ 0
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