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Assignment on Activity Based Costing

Projected Profits: What is the Next-Step towards Activity-Based Costing?

Flat Molded
Units 50,000 5,000
Price $15.00 $25.00
Direct materials 1.08 1.20
Direct labor 5.00 10.00
Purchasing 0.30 7.00
W & Handling 0.12 2.40

Man. OH _ ___
Unit (Inventory) Cost ____ _____
Profit per unit __ __ _____

Allo. Base Usage
Flat Molded Flat Molded
Sales 875,000 750,000 125,000
Materials 60,000 54,000 6,000
Labor 300,000 250,000 50,000
Purchasing 50,000 p. Orders 30 70 15,000 35,000
W & Handling 18,000 deliveries 50 100 6,000 12,000

Man OH _______ total DLH 25,000 5,000 _______ _______
G. Margin 255,000
Admin 90,000
Marketing 100,000
Profits 65,000

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Assignment on Activity Based Costing

Your name: ____________________________ Email: ________________________
Partner's Name _________________

Projected Profits: What is the Next-Step towards Activity-Based Costing?

Flat ...

Solution Summary

The solution computes projected profit in an Activity Based Costing scenario.

$2.19