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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 $252,000, consisting of the following activity cost pools for the current month:

Activity Centers

Activity Costs

Cost Drivers

Activity Level
Assembly setups $69,000

Setup hours

1,500
Materials handling 39,000

Number of moves

300
Assembly 120,000

Assembly hours

12,000
Maintenance 24,000 Maintenance hours 1,200
Total $252,000

Total direct labor hours used during the month were 8,000. Panasonic produces many different electronic products, including the following two products produced during the current month:

Model X301 Model Z205
Units produced 1,000 1,000
Direct materials costs $39,000 $39,000
Direct labor costs $36,500 $36,500
Direct labor hours 500 500
Setup hours 50 100
Materials moves 25 50
Assembly hours 800 800
Maintenance hours 10 40

a. Calculate the total per-unit cost of each model using direct labor hours to assign manufacturing overhead to products. Round rate to two decimal places. Overhead rate per direct labor hour $Answer Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

X301 Z205
Direct materials
Direct labor
Overhead cost
Total cost
Units
Per unit cost

b. Calculate the total per-unit cost of each model using activity-based costing to assign manufacturing overhead to products.

Assembly setups

Materials handling

Assembly

Maintenance

Round cost per unit to two decimal places, if needed.

X301 Z205
Direct materials cost
Direct labor cost
Manufacturing overhead costs:
Assembly setup
Materials handling
Assembly
Maintenance
Total cost
Units
Per unit cost

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