Traditional Product Costing Versus Activity-Based Costing
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 $216,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setup: $51,000 Setup hours 1,500 Materials handling 21,000 Number of moves 300 Assembly 120.000 Assembly hours 12.000 Maintenance 24.000 Maintenance hours 1.200 Tota $216,000 Support 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 $21,000 $21,000 Direct labor costs $10500 $10,500 Direct labor hours 500 500 Setup hours 50 100 Materials moves 25 50 Assembly hours 800 800 Maintenance hours 10 10 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 $ 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 Uirect materials $ 21000 5 21000 Direct labor 18500 18500 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 6:02 PM Type here to search 2/7/2021a. 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 s 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 $ 21000 $ 21000 Direct labor 1850 1850 Support 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 s 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 S Units Per unit cost S Check Previous Save Answers Finish attempt .. Q 6:03 PM Type here to search 2/7/2021
