Activity Cost Behavior

Hi-Low Method
Month Delivery Cost ($) Deliveries
Jan 2,176.00 105
Feb 2,272.00 110
Mar 1,926.40 92
Apr 1,696.00 80
May 1,600.00 75
Jun 2,752.00 135
Jul 3,616.00 180
Aug 1,849.60 88
Sep 1,676.80 79
Oct 3,808.00 190
Nov 3,961.60 198
Des 4,000.00 200

High 4,000.00 200

Low 1,600.00 75
2,400.00 125.00 19.20
Variabel Rate Fixed Cost
19.20 160.00
Cost Function
$ 160,00 + ($19,20 X Setup Hours)

Kos Total january

2,560.00

3840
2400
Variable rate (High cost-Low cost)/(High output-Low output)
Fixed cost Total cost for high point -(Variable rate x High output)
Fixed cost Total cost for low point -(Variable ratex Low output)

Cost Function
Total Cost = Fixed Cost +(Variable Rate x Setup Hours)
 Budgeted Overhead Cost
Overhead Item Expected Cost Expected Quantity
Cost Driver Rate
(x) (y)
(z) = (x)/(y)
Setup costs $ 200,000 Number of setups 500 400
Ordering costs 80,000 Number of orders 3,200 25
Maintenance 400,000 Machine hours 4,000 100
Power 40,000 Kilowatt hours 80,000 0.5

$ 720,000
per direct labor hou $ 180
 Job 400 Job 401

Direct materials $ 750 $ 2,000

Direct labor $ 700 $ 2,400
Units completed 100 160
Direct labor hours 50 80
Number of setups 1 4
Number of orders 4 5
Machine hours 20 25
Kilowatt hours 30 50

The company's normal activity is

4,000 direct labor hours.

1. Overhead cost assigned to Job 401

2. The total cost and unit cost of Job

401 using direct labor hours

3. Total overhead allocated to Job 401,

If four activity-based cost drivers
digunakan to allocate overhead costs,

4. The total cost and unit cost of Job

401, Jika activity-based cost drivers
digunakan

5. Mengapa ABC Costing dibutuhkan

dalam perhitungan kos suatu entitas?
 Job 401 Job 401
Traditional Costing Activity-Based Costing
Total Per unit Total
Direct materials $ 2,000 $ 12.50 Direct materials $ 2,000
Direct labor $ 2,400 $ 15.00 Direct labor $ 2,400
Total direct costs $ 4,400 $ 27.50 Total direct costs $ 4,400
Overhead costs allocated $ 14,400 $ 90.00 Overhead Cost:
Total costs $ 18,800 $ 117.50 Setup costs
4 x $400 $ 1,600
Ordering costs
5 $25 $ 125
Maintenance
25 x $100 $ 2,500
Power
50 x $0,5 $ 25
Total Overhead Cost $ 4,250
Total Cost $ 8,650
01
d Costing
Per unit
$ 12.50
$ 15.00
$ 27.50

$ 10.00

$ 0.78

$ 15.63

$ 0.16
$ 26.56
$ 54.06
Accounts payable $ 20,000 Sales $ 400,000
Accounts receivable 50,000 Capital stock 200,000
Depreciation, factory 12,000 Retained earnings (beginning) 64,000
Inventories (8/31) 90,000 Maintenance, factory 14,000
Inventories (9/30) 90,000 Cash 28,000
Materials used 100,000 Equipment, net 120,000
Office salaries 40,000 Buildings, net 200,000
Insurance, factory 2,000 Utilities, factory 8,000
Factory wages 70,000 Selling expenses 30,000
Bonds payable 80,000
 Soo-Tea House
Cost of Goods Sold Budget
For The Month Ended September 30
Beginning finished-goods inventory, (8/31) 90,000
Materials used 100,000
Factory wages 70,000
Cost of goods manufactured 170,000
Cost of goods available for sale 260,000
Deduct ending finished-goods inventory (9/30) - 90,000
Cost of goods sold 170,000
 Soo-Tea House Soo-Tea House
Selling and Administrative Expenses Budget Budgeted Income Statement
For The Month Ended September 30 For The Month Ended September 30
Selling expenses 30,000 Sales $ 400,000
Office salaries 40,000 Cost of goods sold $ -170,000
Utilities, factory 8,000 Gross margin $ 230,000
Depreciation, factory 12,000 Selling and administrative expenses $ -106,000
Maintenance, factory 14,000 Operating income $ 124,000
Insurance, factory 2,000 Interest expense -
Total selling and administrative expen 106,000 Income before income taxes $ 124,000
Income taxes -
Net income $ 124,000

Soo-Tea House
Budgeted Balance Sheet
For The Month Ended September 30
Assets
Current assets:
Cash 28,000
Accounts receivable 50,000
Inventories (9/30) 90,000
Total current assets
Plant assets:
Buildings, net 200,000
Equipment, net 120,000
Total plant asset
Total Assets

Liabilities and Equity

Current liabilities:
Accounts payable
Long-term liabilities:
Bonds payable
Total liabilities
Equity:
Retained earning (9/30) 188,000
Capital stock 200,000
Total equity
Total Liabilities and Equity
 eet
ptember 30

168,000

320,000
488,000

ty

$ 20,000

$ 80,000
$ 100,000

388,000
$ 488,000
 Maintenance Personnel
A B
Department Department
Budgeted costs $ 360,000 $ 110,000 $ 188,000 $ 282,000
Budgeted maintenance-hours NA 880 1,230 680
Number of employees 60 NA 290 630

PROPORTION TO BE ALLOCATED
Maintenance Personnel A B
SD Department Department
Maintenance
Department 64.4% 35.6%
Personnel
Department 31.5% 68.5%

COST ALLOCATED

Maintenance Personnel
A B
Department Department
COST INCURRED $ 360,000 $ 110,000 $ 188,000 $ 282,000
Maintenance Department -360,000 231,832 128,168
Personnel Department 0 -110,000 34,674 75,326
TOTAL 0 0 454,506 485,494
 Nah, tolongin dong bantu
mempersiapkan budgeted income
statement for the month ended
September 30 dan budgeted
balance sheet as of September
30.

0.644 0.356

203,494