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P015 Studio Cabinet 2

Revenue176,327
Direct margin52,615
Activity cost45,714
ABC profit6,901 (3.9%)
Traditional profit18,718

subsidised Traditional costing assigns 33,897 of overhead from 1,212 labour hours; ABC assigns 45,714.

Profit waterfall

050,000100,000150,000200,000 Revenue: 176,327 176,327 RevenueDirect cost: -123,711 -123,711 Direct costDirect margin: 52,615 52,615 Direct marginSetups: -12,675 -12,675 SetupsCustom finishing: -9,286 -9,286 Custom finishingEngineering changes: -7,363 -7,363 Engineering changesMachine run: -6,479 -6,479 Machine runQuality inspection: -6,206 -6,206 Quality inspectionHand assembly: -3,705 -3,705 Hand assemblyProfit: 6,901 6,901 Profit

Activity costs

ActivityCostShare
Setups12,67528%
Custom finishing9,28620%
Engineering changes7,36316%
Machine run6,47914%
Quality inspection6,20614%
Hand assembly3,7058%