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P019 Studio Desk 3

Revenue125,312
Direct margin36,725
Activity cost45,388
ABC profit-8,663 (-6.9%)
Traditional profit-719

subsidised Traditional costing assigns 37,443 of overhead from 1,339 labour hours; ABC assigns 45,388.

Profit waterfall

-50,000050,000100,000150,000 Revenue: 125,312 125,312 RevenueDirect cost: -88,587 -88,587 Direct costDirect margin: 36,725 36,725 Direct marginSetups: -12,675 -12,675 SetupsEngineering changes: -10,308 -10,308 Engineering changesCustom finishing: -6,695 -6,695 Custom finishingQuality inspection: -6,206 -6,206 Quality inspectionMachine run: -5,412 -5,412 Machine runHand assembly: -4,093 -4,093 Hand assemblyProfit: -8,663 -8,663 Profit

Activity costs

ActivityCostShare
Setups12,67528%
Engineering changes10,30823%
Custom finishing6,69515%
Quality inspection6,20614%
Machine run5,41212%
Hand assembly4,0939%