costalloc

← Products

P039 Atelier Cabinet 5

Revenue199,026
Direct margin66,815
Activity cost93,588
ABC profit-26,773 (-13.5%)
Traditional profit51,162

hidden loser Traditional costing assigns 15,653 of overhead from 560 labour hours; ABC assigns 93,588.

Profit waterfall

-50,000050,000100,000150,000200,000 Revenue: 199,026 199,026 RevenueDirect cost: -132,211 -132,211 Direct costDirect margin: 66,815 66,815 Direct marginSetups: -33,149 -33,149 SetupsCustom finishing: -22,675 -22,675 Custom finishingEngineering changes: -20,616 -20,616 Engineering changesQuality inspection: -11,420 -11,420 Quality inspectionMachine run: -4,017 -4,017 Machine runHand assembly: -1,712 -1,712 Hand assemblyProfit: -26,773 -26,773 Profit

Activity costs

ActivityCostShare
Setups33,14935%
Custom finishing22,67524%
Engineering changes20,61622%
Quality inspection11,42012%
Machine run4,0174%
Hand assembly1,7122%