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 CentersActivity CostsCost DriversActivity LevelAssembly setups$ 66,000Setup hours2,000Materials handing32,400Number of moves600Assembly180,000Assembly hours18,000Maintenance39,800Maintenance hours1,990Total$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 X301Model Z205Units produced1,5001,500Direct materials costs$22,000$22,000Direct labor costs$17,000$17,000Direct labor hours700700Setup hours60120Materials moves3060Assembly hours900900Maintenance hours2080

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.

X301Z205Direct materialsAnswer

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.

X301Z205Total 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