Question

# Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its...

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

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

 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

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