Question

In: Accounting

Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...

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 $216,000, consisting of the following activity cost pools for the current month:

Activity Centers

 Activity Costs

Cost Drivers

 Activity Level
Assembly setups $51,000

Setup hours

 1,500
Materials handling 21,000

Number of moves

 300
Assembly 120,000

Assembly hours

 12,000
Maintenance 24,000 Maintenance hours 1,200
Total $216,000

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 $21,000 $21,000
Direct labor costs $18,500 $18,500
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 Answer Answer
Direct labor Answer Answer
Overhead cost Answer Answer
Total cost Answer Answer
Units Answer Answer
Per unit cost Answer Answer

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

Assembly setups

Answer
Materials handling

Answer
Assembly

Answer
Maintenance

Answer

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

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

Solutions

Expert Solution

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Traditional Product Costing versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...
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 $636,400 consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups $ 132,000 Setup hours 2,000 Materials handing 64,800 Number of moves 600 Assembly 360,000 Assembly hours 18,000 Maintenance 79,600 Maintenance hours 1,990 Total $636,400 Total direct labor hours used during the month were...
Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...
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....
Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...
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 $216,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups $51,000 Setup hours 1,500 Materials handling 21,000 Number of moves 300 Assembly 120,000 Assembly hours 12,000 Maintenance 24,000 Maintenance hours 1,200 Total $216,000 Total direct labor hours used during the month were 8,000....
Traditional Product Costing versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...
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 $436,000 consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Activity Level Assembly setups $ 124,000 Setup hours 4,000 Materials handling 57,000 Number of moves 600 Assembly 225,000 Assembly hours 12,500 Maintenance 30,000 Maintenance hours 1,200 Total $436,000 Total direct labor hours used during the month were...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $979,200 Number of setups 7,200 Ordering costs 260,000 Number of orders 65,000 Maintenance 1,840,000 Number of machine hours 80,000 Power 176,000 Number of kilowatt hours 440,000 Total predicted direct labor hours...
3. Traditional Product Costing versus Activity Based Costing Ridgeland Inc. makes backpacks for large sporting goods...
3. Traditional Product Costing versus Activity Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customer’s store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year. Overhead Item Expected Costs Cost Driver Maximum Order Setup costs $489,600 Number of setups 7,200 Ordering costs 130,000 Number of orders 65,000 Maintenance 920,000 Number of machine hours 80,000 Power 88,000 Number of kilowatt hours 440,000 Total predicted direct...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Setup costs $1,224,000 Number of setups 7,200 Ordering costs 325,000 Number of orders 65,000 Maintenance 2,300,000 Number of machine hours 80,000 Power 220,000 Number of kilowatt hours 440,00 Total predicted direct labor hours for next year is 52,000. The following data...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $734,400 Number of setups 7,200 Ordering costs 195,000 Number of orders 65,000 Maintenance 1,380,000 Number of machine hours 80,000 Power 132,000 Number of kilowatt hours 440,000 Total predicted direct labor hours...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that...
Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $244,800 Number of setups 7,200 Ordering costs 65,000 Number of orders 65,000 Maintenance 460,000 Number of machine hours 80,000 Power 44,000 Number of kilowatt hours 440,000 Total predicted direct labor hours...
Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods...
Traditional Product Costing Versus Activity-Based Costing High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The accounting department has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum   Quantity Setup costs      $1,404,000 Number of setups 7,200 Ordering costs        360,000 Number of orders 60,000 Maintenance     1,200,000 Number of machine hours 80,000 Power        120,000 Number of kilowatt hours...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT