Exercise

8-8 Activity Measure

Activity Activity Example of

classification activity
measurement
a)Direct labor Unit level Number of
workers direct labor
assemble a
product
b) product are Product level Number of
designed by product
engineers assigned
c) Equipment is Batch level Number of set
setup up

d) Machine are Unit level Machines hours

used to shape
and cut
material
e) Monthly bills
are sent out to Customer level Number of
regular customer
customer
f) Materials are
moved from the
receiving dock Batch level Number of
to production batch
line
g) All completed
units are Unit level Number of
inspected for compete
detect

Exercise
8-9

1)
Activity Total Total Cost Activity
cost Pool activity Rate
Machine set 18000 100 18
ups
Special 200000 5000 40
Processing
General 272000 8000 34
Factory
Total 490000 13100 92

Kos seunit = 490000

10000
 =$49

2)
Activity Activity Activity ABC Cost
Cost Pool Rate
Machines 180 300 54000
setups
Special 40 0 0
processing
General 34 16000 544000
Factory
Total 598000

Kos Seunit = 598000

40000
=$14.95
8-10 First stage allocation

Openin Processi Processi Other total

g ng ng activit
Accou deposit Other y
nt of custome
withdra r
w transacti
on
Teller
wages 8000 10400 32000 16000 16000
assista 0 0
nt
branch
Manag
er 11250 3750 22500 37500 75000
Salary
branch
Manag
er
salary 4000 0 8000 68000 80000
total 23250 107750 62500 12150 31500
0 0

8-11
1)First stage allocation
Activity Total cost Total Activity
cost pool activity rate
Opening 23250 500 46.50
account
Processing 107750 100000 1.08
deposit and
withdrawal
Processing 62500 5000 12.08
other
customer
others 121500 Not Not
applicable applicable
Activity rate=total cost
Total activity
2) Operasi di cawangan perlu menjalankan
transaksi proses pengurusan perakaunan dgn
baik.

8-12
Second stage allocation to an order
Activity Activity activity ABC cost
cost pool rate
Order size 16.85 per 200 direct $3370
direct labor labor
hours
Customer 320 per 0 $0
order customer
order
Product 89 per 4 hours of $356
testing testing product
hour testing
Selling 1090000 2 sales call $2180
 per sales
call
total $5906

8-18
1) Distribution of resource
consumption across
Activity cost pool
Volum Order Custom other total
e relate er
 rated d support
Wages and 1200 9000 60000 3000 30000
salaries 00 0 0 0
Other 8000 1000 20000 4000 10000
overhead 0 0 0 0
cost
150000 100000 80000
70000 400000

2)
Activity Total cost Total Activity
cost pool activity rate
Volume 150000 20000 DLH 7.5
related
Order 100000 400 orders 250
related
Customer 80000 200 400
support customers
other 70000 Not 0
applicable

3)
Activity Activity activity ABC cost
cost pool rate
Unit 250 10 units $2500
ordered
Direct 7.5 2 DLHs per $15
labor-hours unit
Selling 0 $300 per 0
price unit
Direct 0 $180 per 0
material unit
Direct labor 0 $50 per 0
unit
Customer 0 0 0
support
cost $2515

Customer Windward Withdrawal

margin-activity yachts yachts
based costing
sales 3000
Cost:
Direct material 1800
Direct labor 100
1900
Customer 1100
margin