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 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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