costalloc

← Products

P034 Atelier Table 5

Revenue110,506
Direct margin48,537
Activity cost55,335
ABC profit-6,799 (-6.2%)
Traditional profit43,308

hidden loser Traditional costing assigns 5,228 of overhead from 187 labour hours; ABC assigns 55,335.

Profit waterfall

-25,000025,00050,00075,000100,000125,000 Revenue: 110,506 110,506 RevenueDirect cost: -61,970 -61,970 Direct costDirect margin: 48,537 48,537 Direct marginEngineering changes: -27,978 -27,978 Engineering changesSetups: -12,675 -12,675 SetupsCustom finishing: -6,263 -6,263 Custom finishingQuality inspection: -6,206 -6,206 Quality inspectionMachine run: -1,643 -1,643 Machine runHand assembly: -571 -571 Hand assemblyProfit: -6,799 -6,799 Profit

Activity costs

ActivityCostShare
Engineering changes27,97851%
Setups12,67523%
Custom finishing6,26311%
Quality inspection6,20611%
Machine run1,6433%
Hand assembly5711%