Scientific Business Total

Units produced per year 30.000,00 300.000,00

Prime costs 100.000,00 1.000.000,00 1.100.000,00
Direct labor hours 40.000,00 400.000,00 440.000,00
Machine hours 20.000,00 200.000,00 220.000,00
Production runs 40,00 60,00 100,00
Inspection hours 800,00 1.200,00 2.000,00
Maintenance hours 900,00 3.600,00 4.500,00

Department 1 Department 2 Total

Direct labor hours:
Scientific calculator 30.000,00 10.000,00 40.000,00
Business calculator 45.000,00 355.000,00 400.000,00
Total 75.000,00 365.000,00 440.000,00

Machine hours:
Scientific calculator 10.000,00 10.000,00 20.000,00
Business calculator 160.000,00 40.000,00 200.000,00
Total 170.000,00 50.000,00 220.000,00

Overhead costs:
Setup costs 90.000,00 90.000,00 180.000,00
Inspection costs 70.000,00 70.000,00 140.000,00
Power 100.000,00 60.000,00 160.000,00
Maintenance 80.000,00 100.000,00 180.000,00
Total 340.000,00 320.000,00 660.000,00

1 The total overhead for the plant = $ 340.000,00 + $ 320.000,00

= $ 660.000,00

Plantwide rate = $ 660.000,00 / $ 440.000,00 direct labor hours

= $ 1,50 per direct labor hour

Unit Cost Computation: Plantwide Rates

Scientific Business
Prime costs $ 100.000,00 $ 1.000.000,00
Overhead costs:
$ 1,50 x 30.000 $ 45.000,00
$ 1,50 x 300.000 $ 450.000,00
Total manufacturing costs $ 145.000,00 $ 1.450.000,00
Units of production : $ 30.000,00 $ 300.000,00
Unit cost $ 4,83 $ 4,83

2 Department 1 rate = $ 340.000,00 / $ 75.000,00 direct labor hours

= $ 4,53 per direct labor hour

Department 2 rate = $ 320.000,00 / $ 50.000,00 machine hours

= $ 6,40 per machine hour

Unit Cost Computation: Departmental Rates

Scientific Business
Prime costs $ 100.000,00 $ 1.000.000,00
Overhead costs:
[($ 4,53 × 30.000 ) + ($ 6,40 × 10.000)] $ 200.000,00
[($ 4,53 × 45.000 ) + ($ 6,40 × 40.000)] $ 460.000,00
Total manufacturing costs $ 300.000,00 $ 1.460.000,00
Units of production : $ 30.000,00 $ 300.000,00
Unit cost $ 10,00 $ 4,87
3 Product Diversity: Consumption Ratios
Consumption Rate
Overhead Activity Scientific Business Activity Driver
a Setups 0,40 0,60 Production runs
b Machining 0,09 0,91 Machine hours
c Inspection 0,40 0,60 Inspection hours
d Maintenance 0,20 0,80 Maintenance hours

a 40/100 (scientific) and 60/100 (business).

b 20.000/220.000 (scientific) and 200.000/220.000 (business).
c 800/2.000 (scientific) and 1.200/2.000 (business).
d 900/4.500 (scientific) and 3.600/4.500 (business).

Setting up equipment: 180.000,00 / 100,00 = 1.800,00 per setup

Machining 160.000,00 / 220.000,00 = 0,73 per machine hour
Inspecting 140.000,00 / 2.000,00 = 70,00 per inspection hour
Maintenance 180.000,00 / 4.500,00 = 40,00 per maintenance

Unit Cost Computation: Activity Rates

Scientific Business
Prime costs $ 100.000,00 $ 1.000.000,00
Overhead costs:
Setting up:
$ 1.800 x 40 $ 72.000,00
$ 1.800 x 60 $ 108.000,00

Machining :
$ 0,73 x 20.000 $ 14.545,45
$ 0,73 x 200.000 $ 145.454,55

Inspecting
$ 70 x 800 $ 56.000,00
$ 70 x 1.200 $ 84.000,00

Maintenance
$ 40 x 900 $ 36.000,00
$ 40 x 3.600 $ 144.000,00

Total manufacturing costs $ 278.545,45 $ 1.481.454,55

Units of production : $ 30.000,00 $ 300.000,00
Unit cost $ 9,28 $ 4,94

Comparison of Unit Costs

Scientific Business
Activity-based cost 9,28 4,94
Functional-based cost:
Plantwide rate 4,83 4,83
Departmental rates 10,00 4,87

4 Berdasarkan perhitungan unit overhead costs sebagaimana telah diuraikan

pada nomor 1 (plantwide rate) dan nomor 2 (departmental rate), kami
menyimpulkan bahwa metode penghitungan unit overhead costs berdasarkan
departmental rate dapat menghasilkan biaya overhead yang lebih akurat
sesuai dengan jenis dan durasi kegiatan yang diperlukan selama proses
produksi pada masing-masing departemen, yaitu Department 1 dan Department 2
Dengan demikian, penghitungan unit overhead costs berdasarkan plantwide rate
dapat menghasilkan unit overhead costs yang overcosting atau undercosting