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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 $436,000 consisting of the following activity cost pools for the current month:

Activity Centers Activity Costs Cost Drivers Activity Level
Assembly setups $ 124,000 Setup hours 4,000
Materials handling 57,000 Number of moves 600
Assembly 225,000 Assembly hours 12,500
Maintenance 30,000 Maintenance hours 1,200
Total $436,000

Total direct labor hours used during the month were 16,000. Panasonic produces many different electronic products, including the following two products produced during the current month:

Model X301 Model Z205
Units produced 2,000 2,000
Direct materials costs $18,550 $18,550
Direct labor costs $5,000 $5,000
Direct labor hours 200 200
Setup hours 30 60
Materials moves 75 150
Assembly hours 500 750
Maintenance hours 25 45

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 Answer Answer
Direct labor Answer Answer
Overhead Answer Answer
Total cost Answer Answer
Units Answer Answer
Unit cost Answer 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 to two decimal places, if applicable.

X301 Z205
Total direct materials costs Answer Answer
Total direct labor costs Answer Answer
Overhead costs:
Assembly setup Answer Answer
Materials handling Answer Answer
Assembly Answer Answer
Maintenance Answer Answer
Total costs Answer Answer
Units produced Answer Answer
Unit cost Answer Answer

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