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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 $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	1,500
Materials handling	39,000	Number of moves	300
Assembly	120,000	Assembly hours	12,000
Maintenance	24,000	Maintenance hours	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 $Answer 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
Materials handling
Assembly
Maintenance

Round cost per unit to two decimal places, if needed.

	X301	Z205
Direct materials cost
Direct labor cost
Manufacturing overhead costs:
Assembly setup
Materials handling
Assembly
Maintenance
Total cost
Units
Per unit cost

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