Scribd
Upload
82 views12 pages

Calculation

The document contains production and costing information for two products, the Doodler and Sketcher. It shows assembly times, expected volumes, direct material, direct labor and overhead costs, as well as traditional and activity-based costing calculations. Under ABC, indirect costs are allocated to products based on cost pools and activity drivers, resulting in different unit costs for each product compared to traditional costing.

Uploaded by

Kim Ella
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
82 views12 pages

Calculation

The document contains production and costing information for two products, the Doodler and Sketcher. It shows assembly times, expected volumes, direct material, direct labor and overhead costs, as well as traditional and activity-based costing calculations. Under ABC, indirect costs are allocated to products based on cost pools and activity drivers, resulting in different unit costs for each product compared to traditional costing.

Uploaded by

Kim Ella
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 12

Doodler Sketcher

Assembly time 10 20
Expected volume 10,000 500
Total No. of hours 100,000 10,000 110,000

Total budgeted OH 660000


Total No. of hours 110,000 6

Doodler Sketcher
DM 20 45
DL (20 per hour) 200 400
OH (6 per hour) 60 120
Total cost per unit 280 565

FOH 600,000 60,000

Sales 320 950


COGS 280 565
Profit Margin 40 385
Doodler Sketcher
Assembly time 10 20
Expected volume 10,000 500
Total No. of hours 100,000 10,000 110,000

Total budgeted OH 660000


Total No. of hours 110,000 6

Doodler Sketcher
DM 20 45
DL (20 per hour) 200 400
OH (6 per hour) 60 120
Total cost per unit 280 565

FOH 600,000 60,000


Traditional Costing ABC
Sales 320 950 Sales 320 950
COGS 280 565 COGS 262 925
Profit Margin 40 385 Profit Margin 58 25

Doodler Sketcher Total


Setup 100 250 350
Testing 2000 2750 4750
Assembly 100,000 10,000 110000

FOH Total level


Cost pool 1 Setup 140,000.00 350 400
Cost pool 2 Testing 190,000.00 4750 40
Cost pool 3 Assembly 330,000.00 110000 3

Doodler Sketcher

Cost pool 1 40,000 100,000


Cost pool 2 80,000 110,000
Cost pool 3 300,000 30,000
Total 420,000 240,000
Production 10,000 500
OH/unit 42 480

DM 20 45
DL (20 per hour) 200 400
OH/unit 42 480
Total cost per unit 262 925

Sales 320 950


COGS 262 925
Profit Margin 58 25
FOH Small ClockLarge Clock Total Factory OH rate
Material handling 120,000 2000 4000 6,000 20
Maintenance Equipment 80,000 4000 2000 6,000 13
Machining 90,000 50000 50000 100,000 1
Engineering 100,000 10000 5000 15,000 7
Receiving 30,000 250 500 750 40
Setups 96,000 60 20 80 1,200
Inspection 60,000 3000 1000 4,000 15
Pool #1
576,000 Pool #2
Pool #3
Pool #4

Pool 1

Pool #2

Pool #3

Pool #4
Material handling batch level materials are handled on per batch basis
Maintenance equipment product level general assumption is equipment is assigned per product
Machining unit level as good goes to machine on per unit level
Engineering product level deals with the design of the procduct
Receiving batch level
Setups batch level
Inspection batch level

Small Large Total Small


Machining 50000 50000 100000 50%
Setup & Inspection (using setups) 60 20 80 75%
Material handling & Receiving (using material handling) 2000 4000 6000 33%
Engineering & maintenance (maintenance hr) 4000 2000 6000 67%

Machining 90000
Activity driver 100000 0.9

Setup 96000
Inspection 60000
Total 156000
Activity driver 80 1950

Mat handling 120000


receiving 30000
Total 150000
Activity driver 6000 25

Engineering 100000
Large
50%
25%
67%
33%
Pool #1
Pool #2
Pool #3
Pool #4
maintenance 80000
Total 180000
Activity driver 6000 30

Small Large Total


0.9 45000 45000 90000
1950 117000 39000 156000
25 50000 100000 150000
30 120000 60000 180000
Total 332000 244000 576000
Units produced 100000 200000
OH/unit 3.32 1.22
Mat handling 120000
maintenance 80000
Machining 90000
Engineering 100000
receiving 30000
Setup 96000
Inspection 60000
Total 576000

You might also like