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C040 Dealer account 040 Dealer

Revenue389,906
Direct margin134,183
Activity cost74,870
ABC profit59,313 (15.2%)
Traditional profit22,378

over-charged Traditional costing assigns 111,805 of overhead from 3,998 labour hours; ABC assigns 74,870.

Profit waterfall

0100,000200,000300,000400,000 Revenue: 389,906 389,906 RevenueDirect cost: -255,723 -255,723 Direct costDirect margin: 134,183 134,183 Direct marginMachine run: -18,022 -18,022 Machine runHand assembly: -12,221 -12,221 Hand assemblySetups: -11,082 -11,082 SetupsQuality inspection: -9,448 -9,448 Quality inspectionDelivery: -7,413 -7,413 DeliveryPallet handling: -7,404 -7,404 Pallet handlingOther activities: -9,280 -9,280 Other activitiesProfit: 59,313 59,313 Profit

Activity costs

ActivityCostShare
Machine run18,02224%
Hand assembly12,22116%
Setups11,08215%
Quality inspection9,44813%
Delivery7,41310%
Pallet handling7,40410%
Order processing3,4365%
Customer support2,0983%
Custom finishing1,6072%
Credit and collections8811%
Engineering changes6551%
Returns handling6031%