Class Numericals

Class Numericals - Transcript

Product AW SZ A ctivity B ased C osting

Cost

Price

Margin

Activities Engineering Set up Machine Running Packing Total AW 5000 200 50000 5000 60200

Budgeted Cost 125 000 00 300 000 00 1 500 000 00 75 000 00 2 000 000 00 SZ 7500 100 100000 10000 117600

Engg Hrs No of Set ups Machine Hrs No of Packing Orders Total

costly giving a product margin 100 Overhead more expensive Cost Drivers Engg Hrs No of Set ups Machine Hrs No of Packing Orders Total 12500 300 150000 15000 Rate 10 00 1 000 00 10 00 5 00 OH for AW 50 000 00 200 000 00 500 000 00 25 000 00 775 000 00 155 00 OH for SZ AW OH unit SZ OH unit 75 000 00 10 00 3 75 100 000 00 40 00 5 00 1 000 000 00 100 00 50 00 50 000 00 5 00 2 50 1 225 000 00 155 00 61 25 61 25 ABC Price 400 00 200 00 Cost 355 00 141 25 Profit 45 00 58 75

Traditional 400 00 200 00 300 00 155 00 100 00 45 00