Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $252,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups Materials handling $69,000 Setup hours 39,000 Number of moves 1,500 300 Assembly 120,000 Assembly hours 24,000 Maintenance hours 12,000 Maintenance 1,200 Total $252.000 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 2205 Units produced 1,000 1,000 Direct materials costs $39,000 $39,000 Direct labor costs $36,500 $36,500 Direct labor hours 50 500 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. Round rate to two decimal places. Overhead rate per direct labor hour $ 0 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. X301 2205 Direct materials S Direct labor Overhead cost Total cost Units Per unit cost b. Calculate the total per-unit cost of each model using activity-based costing to assign manufacturing overhead to products. Assembly setups S Materials handling s Assembly %24 Maintenance
Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $252,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups Materials handling $69,000 Setup hours 39,000 Number of moves 1,500 300 Assembly 120,000 Assembly hours 24,000 Maintenance hours 12,000 Maintenance 1,200 Total $252.000 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 2205 Units produced 1,000 1,000 Direct materials costs $39,000 $39,000 Direct labor costs $36,500 $36,500 Direct labor hours 50 500 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. Round rate to two decimal places. Overhead rate per direct labor hour $ 0 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. X301 2205 Direct materials S Direct labor Overhead cost Total cost Units Per unit cost b. Calculate the total per-unit cost of each model using activity-based costing to assign manufacturing overhead to products. Assembly setups S Materials handling s Assembly %24 Maintenance
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
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Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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How do I calculate the total per unit cost of each model using direct labor hours to assign manufacturing
Transcribed Image Text:Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $252,000, consisting of the following activity cost pools for the current month:
Activity Centers
Activity Costs Cost Drivers
Activity Level
Assembly setups
$69.000
Setup hours
39,000 Number of moves
1,500
Materials handling
300
Assembly
120,000
Assembly hours
24,000 Maintenance hours
12,000
Maintenance
1,200
Total
$252,000
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
$39,000
$39,000
Direct labor costs
$36,500
$36,500
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.
Round rate to two decimal places.
Overhead rate per direct labor hour $ 0
Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.
X301
Z205
Direct materials $
Direct labor
Overhead cost
Total cost
Units
Per unit cost
b. Calculate the total per-unit cost of each model using activity-based costing to assign manufacturing overhead to products.
Assembly setups
$4
Materials handling $
Assembly
Maintenance
$.
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