Solution-Calculate the total per-unit cost of each model

Calculate the total per-unit cost of each model

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Reference no: EM131772348

Question - 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 $198,000, consisting of the following activity cost pools for the current month:

Activity Centers	Activity Costs	Cost Drivers	Activity Level
Assembly Setups	$45,000	Setup hours	1,500
Materials handling	15,000	Number of moves	300
Assembly	120,000	Assembly hours	12,000
Maintenance	18,000	Maintenance hours	1,200
Total	$198,000

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	$15,000	$15,000
Direct labor costs	$12,500	$12,500
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.

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

Reference no: EM131772348

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Calculate the total per-unit cost of each model

Reference no: EM131772348

Reference no: EM131772348

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