costalloc

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C077 Contract account 077 Contract

Revenue108,967
Direct margin28,986
Activity cost42,285
ABC profit-13,298 (-12.2%)
Traditional profit-2,417

subsidised Traditional costing assigns 31,403 of overhead from 1,123 labour hours; ABC assigns 42,285.

Profit waterfall

-25,000025,00050,00075,000100,000125,000 Revenue: 108,967 108,967 RevenueDirect cost: -79,980 -79,980 Direct costDirect margin: 28,986 28,986 Direct marginEngineering changes: -11,466 -11,466 Engineering changesSetups: -8,106 -8,106 SetupsQuality inspection: -5,040 -5,040 Quality inspectionMachine run: -5,011 -5,011 Machine runHand assembly: -3,432 -3,432 Hand assemblyCustom finishing: -2,634 -2,634 Custom finishingOther activities: -6,596 -6,596 Other activitiesProfit: -13,298 -13,298 Profit

Activity costs

ActivityCostShare
Engineering changes11,46627%
Setups8,10619%
Quality inspection5,04012%
Machine run5,01112%
Hand assembly3,4328%
Custom finishing2,6346%
Delivery2,0535%
Pallet handling1,9895%
Customer support1,3483%
Order processing1,0573%
Credit and collections1490%
Returns handling00%