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P040 Atelier Stool 5

Revenue31,724
Direct margin11,267
Activity cost47,169
ABC profit-35,901 (-113.2%)
Traditional profit6,836

hidden loser Traditional costing assigns 4,432 of overhead from 158 labour hours; ABC assigns 47,169.

Profit waterfall

-40,000-20,000020,00040,000 Revenue: 31,724 31,724 RevenueDirect cost: -20,457 -20,457 Direct costDirect margin: 11,267 11,267 Direct marginEngineering changes: -23,561 -23,561 Engineering changesSetups: -12,675 -12,675 SetupsQuality inspection: -5,462 -5,462 Quality inspectionCustom finishing: -4,319 -4,319 Custom finishingMachine run: -669 -669 Machine runHand assembly: -484 -484 Hand assemblyProfit: -35,901 -35,901 Profit

Activity costs

ActivityCostShare
Engineering changes23,56150%
Setups12,67527%
Quality inspection5,46212%
Custom finishing4,3199%
Machine run6691%
Hand assembly4841%