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 $318,200 consisting of the following activity cost pools for the current month:

Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups$ 66,000Setup hours 2,000 Materials handling 32,400 Number of moves 600 Assembly 180,000 Assembly hours 18,000 Maintenance 39,800 Maintenance hours 1,990Total $318,200

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 1,5001,500 Direct materials costs $22,000 $22,000 Direct labor costs $17,000 $17,000Direct labor hours 700 700 Setup hours 60120 Materials moves 3060 Assembly hours 900900 Maintenance hours 2080

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 totwo decimal places, if applicable.

X301 Z205

Direct materials Answer

Answer

Direct laborAnswer

Answer

OverheadAnswer

Answer

Total costAnswer

Answer

UnitsAnswer

Answer

Unit costAnswer

Answer

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 totwo decimal places, if applicable.

X301 Z205

Total direct materials costsAnswer

Answer

Total direct labor costsAnswer

Answer

Overhead costs:Assembly setupAnswer

Answer

Materials handlingAnswer

Answer

AssemblyAnswer

Answer

MaintenanceAnswer

Answer

Total costsAnswer

Answer

Units producedAnswer

Answer

Unit costAnswer

Answer