Required Calculate the total per-unit cost of each model using direct labor hours to assign manufacturin overhead to products. b. Calculate the total per-unit cost of each model using activity-based costing to assign manufactu ing overhead to products. Comment on the accuracy of the two methods for determining product costs. а. с.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
Section: Chapter Questions
Problem 4PB: During March, the following costs were charged to the manufacturing department: $22,500 for...
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Please help me figure a-d
P5-3A. 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 $204,000,
consisting of the following activity cost pools for the current month:
Cost Drivers
Activity Level
Activity Centers
Activity Costs
1,500
Setup hours
Number of moves..
$ 45,000
15,000
120,000
24,000
Assembly setups
Materials handling
300
Assembly
Maintenance.
Assembly hours
Maintenance hours.
12,000
1,200
Total ..
$204,000
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:
Transcribed Image Text:P5-3A. 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 $204,000, consisting of the following activity cost pools for the current month: Cost Drivers Activity Level Activity Centers Activity Costs 1,500 Setup hours Number of moves.. $ 45,000 15,000 120,000 24,000 Assembly setups Materials handling 300 Assembly Maintenance. Assembly hours Maintenance hours. 12,000 1,200 Total .. $204,000 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..
Direct materials costs.
Direct labor costs.
Direct labor hours.
1,000
$15,000
$12,500
1,000
$15,000
$12,500
Setup hours
Materials moves.
500
500
50
100
Assembly hours
Maintenance hours.
25
50
800
800
10
40
Required
Calculate the total per-unit cost of each model using direct labor hours to assign manufacturing
overhead to products.
Calculate the total per-unit cost of each model using activity-based costing to assign manufactur
ing overhead to products.
Comment on the accuracy of the two methods for determining product costs.
d. Discuss some of the strategic implications of your answers to the previous requirements.
а.
b.
С.
Transcribed Image Text:Model X301 Model Z205 Units produced.. Direct materials costs. Direct labor costs. Direct labor hours. 1,000 $15,000 $12,500 1,000 $15,000 $12,500 Setup hours Materials moves. 500 500 50 100 Assembly hours Maintenance hours. 25 50 800 800 10 40 Required Calculate the total per-unit cost of each model using direct labor hours to assign manufacturing overhead to products. Calculate the total per-unit cost of each model using activity-based costing to assign manufactur ing overhead to products. Comment on the accuracy of the two methods for determining product costs. d. Discuss some of the strategic implications of your answers to the previous requirements. а. b. С.
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