Question

Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $1,591,000, consisting of the following activity cost pools for the current month:

Activity Centers	Activity Costs	Cost Drivers	Activity Level
Assembly setups	$ 330,000	Setup hours	2,000
Materials handing	162,000	Number of moves	600
Assembly	900,000	Assembly hours	18,000
Maintenance	199,000	Maintenance hours	1,990
Total	$1,591,000

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	3,500	3,500
Direct materials costs	$34,000	$34,000
Direct labor costs	$29,000	$29,000
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

1)	overhead rate
	1,591,000/14800
	107.5	per direct labor hour
			X-301	Z205
Direct materiald			34,000	34,000
Direct labor			29,000	29,000
overhead			75250	75250
total cost			138,250	138,250
units			3,500	3,500
unit cost			39.5	39.5
b)
			X-301	Z205
total direct material cost			34,000	34,000
total direct labor cost			29,000	29,000
overhead costs:
Assembly setup			9900	19800
Materials handling			8100	16200
Assembly.			45000	45000
Maintenance			2000	8000
Total costs			128,000	152,000
units produced			3,500	3,500
unit cost			36.57	43.43