Question
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
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 $954,600 consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Activity Level Assembly setups Cost Drivers $198.000 Setup hours 2,000 Materials handling Assembly Maintenance 97,200 Number of moves 540,000 Assembly hours 600 Total 119,400 Maintenance hours $954,600 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: Units produced Model X301 Model Z205 2,500 2,500 Direct materials costs $29,000 $29,000 Direct labor costs $24,000 $24,000 Direct labor hours 700 700 Setup hours 60 120 Materials moves 30 60 Assembly hours 900 900 Maintenance hours 20 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. X301 Z205 Direct materials $ 05 0 Direct labor 0 O Overhead 0 0 Total cost Units $ 0 $ 0 0 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 $ 0 $ Total direct labor costs 0 OO 0 0 Overhead costs: Assembly setup 0 Materials handling 0 Assembly 0 Maintenance 0 Total costs $ 0 $ Units produced 0 Unit cost $ 0 $ OOOOOOO 0 0 0 0 0
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