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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me figure a-d
**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: | 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 | $24,000 | Maintenance hours | 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:**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: | 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 | $24,000 | Maintenance hours | 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.
### Data Table | | 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 | ### Required Tasks 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. c. 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.
Transcribed Image Text:### Data Table | | 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 | ### Required Tasks 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. c. 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.
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