costalloc

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C067 Contract account 067 Contract

Revenue46,537
Direct margin13,673
Activity cost12,191
ABC profit1,482 (3.2%)
Traditional profit4,380

subsidised Traditional costing assigns 9,292 of overhead from 332 labour hours; ABC assigns 12,191.

Profit waterfall

010,00020,00030,00040,00050,000 Revenue: 46,537 46,537 RevenueDirect cost: -32,864 -32,864 Direct costDirect margin: 13,673 13,673 Direct marginSetups: -2,011 -2,011 SetupsMachine run: -1,764 -1,764 Machine runCustomer support: -1,573 -1,573 Customer supportDelivery: -1,368 -1,368 DeliveryQuality inspection: -1,177 -1,177 Quality inspectionHand assembly: -1,016 -1,016 Hand assemblyOther activities: -3,281 -3,281 Other activitiesProfit: 1,482 1,482 Profit

Activity costs

ActivityCostShare
Setups2,01116%
Machine run1,76414%
Customer support1,57313%
Delivery1,36811%
Quality inspection1,17710%
Hand assembly1,0168%
Custom finishing9388%
Pallet handling7676%
Order processing7406%
Engineering changes7146%
Credit and collections1221%
Returns handling00%