costalloc

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C070 Contract account 070 Contract

Revenue396,931
Direct margin115,018
Activity cost108,764
ABC profit6,254 (1.6%)
Traditional profit38,711

subsidised Traditional costing assigns 76,307 of overhead from 2,728 labour hours; ABC assigns 108,764.

Profit waterfall

0100,000200,000300,000400,000 Revenue: 396,931 396,931 RevenueDirect cost: -281,913 -281,913 Direct costDirect margin: 115,018 115,018 Direct marginSetups: -27,140 -27,140 SetupsEngineering changes: -18,452 -18,452 Engineering changesMachine run: -16,865 -16,865 Machine runQuality inspection: -14,704 -14,704 Quality inspectionCustom finishing: -9,883 -9,883 Custom finishingHand assembly: -8,341 -8,341 Hand assemblyOther activities: -13,380 -13,380 Other activitiesProfit: 6,254 6,254 Profit

Activity costs

ActivityCostShare
Setups27,14025%
Engineering changes18,45217%
Machine run16,86516%
Quality inspection14,70414%
Custom finishing9,8839%
Hand assembly8,3418%
Pallet handling6,4706%
Customer support2,7723%
Delivery2,5092%
Order processing1,4801%
Credit and collections1490%
Returns handling00%