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P035 Atelier Desk 5

Revenue108,678
Direct margin42,063
Activity cost82,659
ABC profit-40,597 (-37.4%)
Traditional profit28,733

hidden loser Traditional costing assigns 13,330 of overhead from 477 labour hours; ABC assigns 82,659.

Profit waterfall

-50,000050,000100,000150,000 Revenue: 108,678 108,678 RevenueDirect cost: -66,616 -66,616 Direct costDirect margin: 42,063 42,063 Direct marginSetups: -32,174 -32,174 SetupsEngineering changes: -23,561 -23,561 Engineering changesCustom finishing: -11,877 -11,877 Custom finishingQuality inspection: -11,171 -11,171 Quality inspectionMachine run: -2,419 -2,419 Machine runHand assembly: -1,457 -1,457 Hand assemblyProfit: -40,597 -40,597 Profit

Activity costs

ActivityCostShare
Setups32,17439%
Engineering changes23,56129%
Custom finishing11,87714%
Quality inspection11,17114%
Machine run2,4193%
Hand assembly1,4572%