costalloc

← Products

P007 Classic Cabinet 1

Revenue1,286,990
Direct margin386,041
Activity cost132,407
ABC profit253,634 (19.7%)
Traditional profit4,746

over-charged Traditional costing assigns 381,295 of overhead from 13,633 labour hours; ABC assigns 132,407.

Profit waterfall

0500,0001,000,0001,500,000 Revenue: 1,286,990 1,286,990 RevenueDirect cost: -900,949 -900,949 Direct costDirect margin: 386,041 386,041 Direct marginHand assembly: -41,678 -41,678 Hand assemblyMachine run: -37,114 -37,114 Machine runSetups: -25,349 -25,349 SetupsQuality inspection: -25,322 -25,322 Quality inspectionEngineering changes: -2,945 -2,945 Engineering changesProfit: 253,634 253,634 Profit

Activity costs

ActivityCostShare
Hand assembly41,67831%
Machine run37,11428%
Setups25,34919%
Quality inspection25,32219%
Engineering changes2,9452%