Question

Need help please.

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 $954,600 consisting of the following activity cost pools for the current month:

Activity Centers	Activity Costs	Cost Drivers	Activity Level
Assembly setups	$ 198,000	Setup hours	2,000
Materials handing	97,200	Number of moves	600
Assembly	540,000	Assembly hours	18,000
Maintenance	119,400	Maintenance hours	1,990
Total	$954,600

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 X301	Model Z205
Units produced	2,500	2,500
Direct materials costs	$29,000	$29,000
Direct labor costs	$24,000	$24,000
Direct labor hours	700	700
Setup hours	60	120
Materials moves	30	60
Assembly hours	900	900
Maintenance hours	20	80

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

Answer 1

Calculation of Unit Cost using direct labour hours Model X301 Model Z205 29,000 24,000 45,150 98,150 2,500 39.26 29,000 $ Direct Materials Direct labour Overhead Total Cost 24,000 45,150 98,150 2,500 39.26 Units Unit Cost Note : Calculation of Overhead Cost based on direct Labour hours Total Overhead Cost Total Direct labour hours Overhead rate (954,600/14,800)$ 954,600 14,800 hours 64.50 per direct labour hour Model X301: Direct labour hours Overhead rate Overhead Cost (700 700 hours 64.50 per direct labour hour 64.50 45,150 Model Z205: Direct labour hours Overhead rate Overhead Cost (700 700 hours 64.50 per direct labour hour 64.50 45,150

Calculation of Unit Cost using activity based costing Model X301 29,000 $ 24,000 Model Z205 29,000 24,000 Direct Materials Direct labour Overhead Costs: Assembly Setup Materials handling Assembly Maintainance Total Cost Units Unit Cost 5,940 4,860 27,000 1,200 92,000 $ 2,500 36.80 11,880 9,720 27,000 4,800 106,400 2,500 42.56 Note: Calculation of Overhead Cost based on activity based costing Activity Level Total Number of drivers) 2,000 Model X301 Model Z205 Activity Centers Activity Costs Cost Drivers Number of drivers 60 Number of drivers 120 Cost Assembly setups Materials handling Assembly 198,000 Setup hours 97,200 Number of moves 540,000 Assembly hours 119,400 Maintenance hours 5,940 11,880 (198,000/2,000)*60 (97,200/600)*30 (540,000/18,000) *900 (119,400/1,990) 20 (198,000/2,000) 120 97,200/600) 60 (540,000/18,000)*900 (119,400/1,990)*80 600 30 4,860 60 9,720 18,000 900 27,000 900 27,000 Maintenance 1,990 20 1,200 80 4,800