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C078 Contract account 078 Contract

Revenue21,992
Direct margin6,019
Activity cost10,189
ABC profit-4,171 (-19.0%)
Traditional profit-755

subsidised Traditional costing assigns 6,774 of overhead from 242 labour hours; ABC assigns 10,189.

Profit waterfall

-10,000010,00020,00030,000 Revenue: 21,992 21,992 RevenueDirect cost: -15,973 -15,973 Direct costDirect margin: 6,019 6,019 Direct marginDelivery: -1,597 -1,597 DeliveryCustomer support: -1,573 -1,573 Customer supportSetups: -1,548 -1,548 SetupsMachine run: -1,176 -1,176 Machine runQuality inspection: -1,011 -1,011 Quality inspectionOrder processing: -793 -793 Order processingOther activities: -2,492 -2,492 Other activitiesProfit: -4,171 -4,171 Profit

Activity costs

ActivityCostShare
Delivery1,59716%
Customer support1,57315%
Setups1,54815%
Machine run1,17612%
Quality inspection1,01110%
Order processing7938%
Hand assembly7417%
Engineering changes5385%
Pallet handling4795%
Custom finishing3113%
Returns handling3023%
Credit and collections1221%