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in
St
rat
egi
cCostManagement–I(
ABC)
QP(
2015-
2020)

(
2015)

Q1.TheCol umbusCompanypr oducesonl ytwopr oducts:amaj orcomput erpar tandcellphones.The

companyusesanor malcostsy st
em andov er
headcost sarecur rentl
yal l
ocatedusingaplant-wide
overheadratebasedondi r
ectlaborhours.Outsi
decostconsul tant
shav er ecommended,howev er
,that
thecompanyuseact i
vit
ybasedcostingtochargeov erheadtopr
oducts.
Thecompanyexpect stoproduce4000comput erparts&2000cel lphonesin2014.Each
comput erpar
tsrequi
restwodirectlaborhour
st opr oduceandeachcel lphonerequir
esone-hal
fhourt o
produce.

Thedi
rectmat
eri
alanddi
rectl
aborcost
sincl
udedi
nthet
wopr
oduct
sar
easf
oll
ows:
I
tem Comput
erpar
t(Rs.
) Cel
lphone(
Rs.
)

Di
rectmat
eri
al(
peruni
t) 3000 1700

Di
rectl
abor(
peruni
t) 1600 400

Budget
ed(
est
imat
ed)t
otal
fact
oryov
erheaddat
afor2014:

Act
ivi
ty Budget
edov
erhead(
Rs.
) Est
imat
edv
olumel
evel

Pr
oduct
ionset
ups 8000000 20set
ups

Mat
eri
alhandl
i
ng 7000000 50001bs

Packagi
ngandshi
ppi
ng 12000000 6000boxes

Tot
alf
act
oryov
erhead 27000000

Basedonananal y
sisofthet
hreeov
erheadact
ivi
ti
es,
itwasest
imat
edt
hatt
het
wopr
oduct
swoul
d
r
equi
retheseact
ivi
ti
esasfol
lowsi
n2014:

Act
ivi
ty Comput
erpar
ts Cel
lphones Ov
eral
ltot
als

Pr
oduct
ionset
ups 5set
ups 15set
ups 20set
ups

Mat
eri
alhandl
i
ng 1000(
1bs) 4000(
1bs) 5000(
1bs)

Packagi
ngandshi
ppi
ng4000(
boxes) 2000(
boxes) 6000(
boxes)

Requi
red:
a)Calculat
et hecostofeachproductusi
ngapl antwi
deratebasedondi r
ectl
aborhours.
b)Calculat
et heacti
vi
tycostrat
esfor(a)setups,(
b)materi
alhandl
ingand(c)packagi
ngandshi
ppi
ng.
c) Costoutthetwopr oduct
susinganactiv
ity-
basedcosti
ngsystem.
Sol
uti
on:

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Di
rectl
aborhourr
ate=Tot alf
ixedoverhead
Totaldir
ectlaborhour
=27000000
9000
=Rs.3000perdi rectl
aborhrr
ate.

Tot
alDi
rectl
aborhour=(4000*
2)+(2000*
0.5)
=8000+1000 =9000

St
ep1-Cal
cul
ati
onofcostofeachpr
oductusi
ngaPant
-wi
der
atebasedondi
rectl
aborhour
:

Par
ti
cul
ars Comput
er(
peruni
t) Cel
lphone(
peruni
t)

Di
rectMat
eri
al 3000 1700

Di
rectLabor 1600 400

Pr
imecost 4600 2100

(
+)Ov
erheadscost(
3000*
2) 6000 -

(
3000*
0.5) - 1500

Tot
alcostperuni
ts(
A) 10600 3600

Uni
ts(
B) 4000 2000

Tot
alcost(
A*B) 42400000 7200000

St
ep2-Cal
cul
ati
onofact
ivi
tybasedcostr
ates/
stat
ementshowi
ngov
erheadabsor
pti
on:

NameofO/
H ascost Budget
ed Budget
ed Cal
cul
ati
onb/
d Rates of
pool O/HRs. vol
ume of cost
costdr
iver dri
ver
s

Pr
oduct
ionset
ups 8000000 20 8000000/
20 400000

Mat
eri
alhandl
i
ng 7000000 5000 7000000/
5000 1400

Packagi
ngandshi
ppi
ng 12000000 6000 12000000/
6000 2000

St
ep3–Cal
cul
ati
onofcostoft
het
wopr
oductusi
ngABCsy
stem

Par
ti
cul
ars Comput
er Cel
lphone

Di
rectMat
eri
al 12000000 3400000

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(
3000*
4000) (
1700*
2000)

Di
rectLabor 6400000 800000

(
1600*
4000) (
400*
2000)

Pr
imecost 18400000 4200000

Pr
oduct
ionset
ups 2000000 6000000

(
5*400000) (
15*
400000)

Mat
eri
alhandl
i
ng 1400000 5600000

(
1400*
1000) (
1400*
4000)

Packagi
ngandshi
ppi
ng 8000000 4000000

(
2000*
4000) (
2000*
2000)

Tot
alcostA 29800000 19800000

Uni
tsB 4000 2000

Tot
alcostperuni
tA/
B 7450 9900

St
ep4–St
atementshowi
ngcostdi
stor
ti
on(
dif
fer
ent
):

Par
ti
cul
ars Comput
er Cel
lphone

Peruni
tcost
:

Tr
adi
ti
onal
met
hod 10600 3600

ABCmet
hod 7450 9900

3150 (
6300)

Ther
efor
e,Computerov
erobserv
edaspertr
adit
ionalmethod.
Cell
phoneunderobser
vedaspert
radi
tionalmethod.

(
2017)

Q2.Alphal
imi
tedhasdeci
dedtoanal
yzetheprof
itabil
i
tyofi
tsf
ivenewcustomers.I
tbuysbot
tl
edwaterat
Rs.
90per
Careandsel
lst
oretai
lcust
omersatali
stpri
ceofRs.108percare.Thedat
apert
aini
ngtofi
vecust
omers
ar
e:
Customers
A B C D E

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Car
essol
d 4680 19688 136800 71550 8775

Li
stsel
l
ingpr
ice Rs.108 Rs.108 Rs.108 Rs.108 Rs.108

Act
ual
sel
l
ingpr
ice Rs.108 Rs.
106.
20 Rs.99 Rs.104.
40 Rs.97.
20

Numberofpur
chaseor
der
s 15 25 30 25 30

Numberofcust
omerv
isi
ts 2 3 6 2 3

Numberofdel
i
ver
ies 10 30 60 40 20

Ki
l
omet
erst
rav
ell
edperdel
i
ver
y20 6 5 10 30

Numberofexpedi
teddel
i
ver
ies 0 0 0 0 1

I
tsfi
veacti
vi
ti
esandt
hei
rcostdr
iver
sare:
Act
ivi
ty Costdr
iverr
ate(
Rs.
)

Or
dert
aki
ng 750perpur
chaseor
der

Cust
omerv
isi
ts 600percust
omerv
isi
t

Del
i
ver
ies 5.
75

Pr
oducthandl
i
ng 3.
75percar
esol
d

Expedi
teddel
i
ver
ies 2.
250perexpedi
teddel
i
ver
y

Requir
ed:
a)Comput ethecustomerlevel
operati
ngincomeofeachoff iveretai
lcustomersnowbeing
examined(A,B,C, DandE)commentont heresul
ts.
b)Whati nsight
sar egai
nedbyr epor
ti
ngbotht heli
stsell
ingpriceandt heactual
sell
i
ngpricefor
eachcustomer?
c) Whatf actorsAlphali
mitedshouldconsi
derindecidingwhet hertodroponeormor eoffiv
e
cust
omer s?
Sol
uti
on:
St
atementshowingcustomerlevel operat
ingincome

Par
ti
cul
ars A B C D E

Car
essol
d 4680 19688 136800 71550 8775

Rev
enueasperl
i
stpr
ice 505440 2126304 14774400 7727400 947700

(
108*
car
essol
d)

(
-)di
scount(
BIF) 0 35438 1231200 257580 94770

Rev
enueatact
ual
pri
ce 505440 2090866 13543200 7469820 852930

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(
-)costofgoodssol
d 421200 1771920 12312000 6439500 789750

(
pur
chase@ Rs.90)

Gr
ossmar
gin(
A) 84240 318946 12312000 1030320 63180

Cust
omerl
evel
oper
ati
ng

act
ivi
ti
escost:
-

Or
dert
aki
ng@ 750 11250 18750 22500 18750 22500

(
15*
750) (
25*
750) (
30*
750) (
25*
750) (
30*
750)

Cust
omeruni
ts@ Rs.600 1200 1800 3600 1200 1800

(
600*
2) (
300*
3) (
600*
6) (
600*
2) (
600*
3)

Del
i
ver
ies@ 5.
75perkm 1150 1035 1725 2300 3450

t
rav
ell
ed (
5.75*
10*
20)(
5.75*
30*
6) (
5.75*
60*
5) (
5.75*
40*
10)(
5.75*
20*
30)

Pr
oducthandl
i
ng 17550 73830 513000 268312 32906

@ 3.
75percar
esol
d (
3.75*
4680) (
3.75*
19688)(
3.75*
136800)
(3.
75*
71550)(
3.75*
8775)

Expedi
teddel
i
ver
ies@2.
250 0 0 0 0 2250

(
2250*
0) (
2250*
0) (
2250*
0) (
2250*
0) (
2250*
1)

Tot
alcost(
B) 31150 95415 540825 290562 62906

Cust
omerl
evel
oper
ati
ng 53090 223531 690375 739758 274

l
evel
(A-
B)

Cust
omerDi
sthemostpr
ofi
tabl
ecust
omerofRs.739757cust
omerEi
slesspr
ofi
tabl
e.

(
2018)

Q3.XYZCompanyltd.hassi
xdepar t
ment s,A,B,C,D,EandF,andhasal l
ocati
onmanuf act
uri
ngoverhead
usi
ngonecostpoolbasedondi rectl aborhours.Theaccounti
ngst af
fhaspr ov
ided t
hefol
lowing
est
imat
esappl
i
cabletot
radit
ional
andABCal locat
ionofmanuf
actur
ingcostsfor2004:
Cost(Rs.) Al
l
ocat
ionBase Acti
vi
ty

Set
-ups 16500 No.ofset
-up 250set
ups

Qual
i
tycont
rol 24000 No.ofi
nspect
or 400i
nspect
ions

Fabr
icat
ion 36000 Pr
oduct
ionr
uns 3600r
uns

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Di
rectl
abor 90000 Di
rectl
aborhour
s 4500l
aborhour
s

Managementi sassessingi fABC shoul dbeused,andhasdet erminedt hatDepart

mentBusedt
he
foll
owing:24set ps,60inspections, 900pr oducti
onr unsand900di rectlaborhoursduri
ng2004.
Youarerequired:
i
. Det ermi nehowmuchov erheadcosti sallocat edtoDept.Busi ngTraditi
onalal
l
ocati
on.
ii
. Usi ngABC, howmuchov erheadcosti sallocat edtoDept.B?
i
ii
. Whi chitemsar ecostdr ivers?
i
v. Whi chitemsar ecostobj ect s?
Sol
uti
on:
i
. Comput ati
onofov erheadcostal locatedt odeptBusi ngtraditi
onalal
locati
on:
Di
rectlaborhourrates=Tot aloverheads
Directlaborhours
=166500 =37Laborhourr ate
4500
Overheadcost=Di rectl aborhourr ate*Di rectlaborhours
=37* 900
=33300

i
i
. Computati
onofover
headcostal
locatedt
odeptBusi
ngABC:
St
ep1: Comput
ati
onofcostdri
verrat
es
CostPool Cost Costdriv
er Vol
ume Calcul
ati
on Costdr
iver
rat
e

Di
rectl
abor 90000 Dir
ectl
abor 4500 90000/
4500 20
hour

Set
-ups 16500 No.ofset
-up 250 16500/
250 66

Qual
it
y 24000 No.ofi
nspect
or 400 24000/
400 60
cont
rol

Fabr
icat
ion 36000 No.of 3600 36000/
3600 10
pr
oducti
onr
uns

St
ep2: Comput
ati
onofov
erheadcost
Act
ivi
ty Cal
culat
ion Ov
erheadabsor
bed

Di
rectl
abor 20*
900 18000

Set
-ups 60*
60 3600

Qual
i
tycont
rol 10*
900 9000

Fabr
icat
ion 66*
24 1584

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32184

i
i
i. Costdri
ver
s:No.ofsetups,No.ofi
nspect
ions,Pr
oducti
onruns,Di
rectl
aborhour
s.
i
v. Costobj
ect:Set
-ups,
Inspecti
on,Pr
oducti
onruns,Di
rectl
aborhour
.

Q4.FireFieldLtd.
,makesasi ngleproduct
-afi
reresi
stantcommerci
alf
il
ingcabi
net–thati
tsell
sto
off
icef urni
tur
edi st
ri
butors.Thecompanyhasasi mpleABC syst
em thatitusesforint
ernal
decisi
onmaki ng.Thecompanyhast wooverheaddepart
mentswhosecost
sareli
stedbel
ow:
Manuf acturedoverhead Rs.500000

Sel
l
ing&admi
nist
rat
iveov
erhead Rs.300000

Tot
alov
erheadcost Rs.800000

Thecompany ’sact
ivi
tybasedcost
ingsy
stem hasthefol
lowi
ngact
ivi
tycostpool
sandact
ivi
ty
measures:
Acti
vitycostpool Act
ivi
tyMeasur
es

Assembl
i
nguni
ts Numberofuni
ts

Pr
ocessi
ngor
der
s Numberofor
der
s

Suppor
ti
ngcust
omer
s Numberofcust
omer
s

Ot
her Notappl
i
cabl
e

Costsassi gnedt othe“ ot

her”act
ivi
tycostpoolhavenoactivi
tymeasure;theyconsi
stofthe
costsofunusedcapaci tyandorgani
zati
on-sust
aini
ngcosts–neitherofwhichareassi
gnedto
products,ordersorcustomers.
Fir
ef iel
ddi str
ibut
est hecost sofmanuf act
uri
ngov er
headandofsel li
ngandadmi ni
str
ati
ve
overheadt ot heactiv
itycostpoolsbasedonempl oy
eeint
ervi
ews,ther esul
tsofwhichare
report
edbel ow:

Di
str
ibut
ionofResour
ceConsumpt
ionAcr
ossact
ivi
tyCostPool
s

Assembl
i
ng Pr
ocessi
ng Support
ing Ot
her Tot
al
Unit
s Or
ders Customers

Manufact
uri
ng 50% 35% 5% 10% 100%
ov
erhead

Sell
i
ng& 10% 45% 25% 20% 100%
admi ni
str
ati
ve
overhead

Tot
alact
ivi
ty 1000uni
ts 250or
der
s 100 - -
cust
omer
s

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Requi
red:
i. Per formthefir
ststageall
ocationofoverheadcostst otheacti
v i
tycostpools.
i
i. Comput eacti
vit
yratesfortheacti
vi
tycostpool s.
i
i
i. Of ficeMartisoneoft heFerrisCorporati
on’scustomer s.Lasty earOff
iceMar torder
ed
fi
ll
ingcabinetfourdiff
erentti
mes.Of fi
cemar torderedat otalof80cabi netsdur
ingthe
years.Constr
uctatableshowingtheov erheadcostsoft hese80uni t
sandf ouror
ders.
Sol
uti
on:
i. St atementshowingallocat
ionofoverheadcostt otheactiv
itycostpools

Act
ivi
ty Assembl
y Pr
ocessi
ng Suppor
ti
ng Ot
her Tot
al
l
ing cust
omers

Manufact
ured 50% 35% 5% 10% 500000
ov
erhead
250000 175000 25000 50000

Sell
i
ng& 10% 45% 25% 20% 300000
admi ni
str
ati
ve
overhead 30000 135000 75000 60000

Tot
alcost 280000 310000 100000 110000 800000

i
i
. Comput
ati
onofact
ivi
tyr
atesf
oract
ivi
tycostpool

Acti
vi
tycost Tot
alcost Act
ivi
tyr
ate Cal
cul
ati
on Rat
es
pool

Assembl
y 280000 1000 280000/
1000 280

Pr
ocessi
ng 310000 250 310000/
250 1240
or
der

Suppor
ti
ng 100000 100 100000/
100 10000
cust
omer

Ot
her
s 110000 0 110000/
0 0

i
i
i. St
atementshowi
ngov
erheadcost

Par
ti
cul
ars Cal
cul
ati
on Cost

Assembl
y (
280*
80) 22400

Pr
ocessi
ngor
der (
1240*
4) 4960

Tot
al 27360

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(
2019)

Q5.Acompanypr
oducesf
ourpr
oduct
s,v
iz.P,
Q,R&S.Thedat
arel
ati
ngt
opr
oduct
ionact
ivi
tyar
easunder
.

Pr
oductQuant
it
yof Mat
eri
al Di
rectl
abor Machi
ne Di
rectl
abor

Pr
oduct
ion cost
/uni
t(Rs.
) hour
s/uni
t hour
s/uni
t cost/
uni
t(Rs.
)

P 1000 10 1 0.
50 6

Q 10000 10 1 0.
50 6

R 1200 32 4 2.
00 24

S 14000 34 3 3.
00 18

Pr
oduct
ionov erheadsareasunder: (Rs.
)
i
. Ov erheadsappl i
cabletomachineori
ent
edact
ivi
ty 149700
ii
. Ov erheadsr el
ati
ngtoor der
ingmater
ial
s 7680
i
ii
. Setupcost s 17400
i
v. Admi nist
rati
onoverheadsforspar
eparts 34380
v. Mat er i
alhandli
ngcosts 30294

Thef
oll
owi
ngf
urt
heri
nfor
mat
ionhav
ebeencompi
l
ed.

Pr
oduct No.ofsetups No.ofmat
eri
als No.oft
imes No.ofspar
e

Or
der
s Mat
eri
alshandl
ed Par
ts

P 3 3 6 6

Q 18 12 30 15

R 5 3 9 3

S 24 12 36 12

Requi
red:
1.Sel ectasuit
ablecostdri
verforeachit
em ofover
headexpenseandcalcul
atet
hecostperuni
t
ofcostdri
ver.
2.Usi ngtheconceptofacti
vi
tybasedcosti
ng.Computet
hefactor
ycostperuni
tofeachpr
oduct.
Sol
uti
on:
St
ep1–St atementshowingrat
esofcostdriv
ers

NameofO/
Hascost Budget
ed Name of cost Budget
ed Calcul
ati
on Rates
pool O/HRs. driv
er vol
ume of b/
d ofcost
costdr
iver dri
ver
s

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Mat
eri
alor
ient
ed 149700 Machi
nehour
s1 49900 149700/
49900 03

Or
der
ingmat
eri
als 7680 No.ofor
der
sfor 30 7680/
30 256

mat
eri
als2

Set
-upcost
s 17400 No.ofsetups3 50 17400/
50 348

Admi
nist
rat
ion 34380 No.ofspar
epar
ts4 36 34380/
36 955

ov
erheadsf
orspar
epar
ts

Mat
eri
alhandl
i
ng 30294 No.oft
imes 81 30294/
81 374

Mat
eri
alshandl
ed5

Wor
kingnot
e:

Rat
esofcostdr
iver
s=Ov er
headsappl
icabl
etomachineor
ient
edact
ivi
ti
es
Machi
nehours
1.Cal
cul
ati
onofmachinehours=Uni
ts*No.ofmachinehrsperuni
t
P=1000*0. 5=500

Q=10000*0.
5=5000

R=1200*2.
00=2400

S=14000*3.
00=42000

Tot
alnumberofmachi
nehour
s=500+5000+2400+42000=49900hr
s.

2.Cal
cul
ati
onofnumberofmat
eri
alsor
der
s
=P+Q+R+S=3+12+3+12=30

3.Cal
cul
ati
onofnumberofset
ups
=P+Q+R+S=3+18+5+24=50

4.Cal
cul
ati
onofnumberofspar
epar
ts
=P+Q+R+S=6+15+3+12=36

5.Cal
cul
ati
onofnumberoft
imesmat
eri
alshandl
ed
=P+Q+R+S=6+30+9+36=81

St
ep2–St
atementshowi
ngov
erheadabsor
pti
onbypr
oduct
sP,
Q,R&S

Name ofcost Rates Quant

it
yvol
ume O/
Habsor
pti
oni
n(Rs.
) Total
dr
iver
s of O/Hi n
cost P Q R S P Q R S (Rs.
)
dri
ver
s

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i
n
(
Rs.
)

Machi
nehour
s 03 500 500 240 4200 1500 1500 7200 1236000 14970
0 0 0

No.ofor
der
sfor256 3 12 3 12 768 3072 768 3072 7680

Mat
eri
als

No.ofsetups 348 3 18 5 24 1044 6264 1740 8352 17400

No.ofspar
epar
ts955 6 15 3 12 5730 1432 2865 11460 34380
5

No.oft
imes 374 6 30 9 36 2244 1122 3366 13464 30294
0
Mat
eri
alshandl
ed

St
ep3–St
atementshowi
ngcostperuni
t

P–1000 Q–10000 R–1200 S–14000

Mat
eri
alcost 10 10 32 34

Laborcost 6 6 24 18

Pr
imecost 16 16 56 52

(
+)Ov
erheads

Mat
eri
alor
ient
ed 1.
5 1.
5 6 9

(
1500/
1000) (
15000/
10000) (
7200/
1200) (
126000/
14000)

Or
der
ingmat
eri
als 0.
768 0.
31 0.
64 0.
22

(
768/
1000) (
3072/
10000) (
768/
1200) (
3072/
14000)

Set
-upcost
s 1.
044 0.
63 1.
45 0.
60

(
1044/
1000) (
6264/
10000) (
1740/
1200) (
8352/
14000)

Admi
nist
rat
ion 5.
730 1.43 2.39 0.
82
(14325/
10000)
ov
erheadsf
orspar
epar
ts
(5730/
1000) (2865/
1200) (
11460/
14000)

Mat
eri
alhandl
i
ng 2.
244 1.12 2.81 0.
96
(11220/
10000)
(
2244/
1000) (3366/
1200) (
13464/
14000)

Costperuni
t 27.
29 20.
99 69.
29 63.
60

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(
2020)

Q6.Thef
oll
owi
ngar
ethedat
arel
ati
ngt
oGodr
ejCompany
:

Par
ti
cul
ars P Q R Tot
al

Pr
oduct
ionandSal
es(
uni
ts)60000 40000 16000

Rawmat
eri
alusagei
nuni
ts 10 10 22

Rawmat
eri
alcost Rs.50 Rs.40 Rs.22 2276000

Di
rectl
aborhour
s 2.
5 4 2 342000

Machi
nehour
s 2.
5 2 4 294000

Di
rectl
aborcost
s Rs.16 Rs.24 Rs.12

No.ofpr
oduct
ionr
uns 6 14 40 60

No.ofdel
i
ver
ies 18 6 40 64

No.ofr
ecei
pts 60 140 880 1080

No.ofpr
oduct
ionor
der
s 30 20 50 100

Ov erheads:
Setup 60000
Machi nes 1520000
Recei ving 870000
Packi ng 500000
Engi neer i
ng 746000
The companyoper ates a Justin Time inv ent
orypolicyand recei
ved each Componentonce per
product ionrun.
Comput e:
a)Thepr oductcostbasedondi r
ectlaborhourrecoveryrat
eofoverheads
b)Thepr oductcostusingABC.
Sol
uti
on:
a)Di r
ectlaborhourrate=Totaloverhead
TotalDi
rectlaborhour
=3696000 =10.81dir
ectlaborhourr
ate
342000
Comput ati
onofov erheadcostundertradit
ionalmethod
Par t
iculars P Q R

Rawmat
eri
alcostperuni
t 50 40 22

Di
rectl
aborcostperuni
t 16 24 12

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Pr
imecost 66 64 34

(
+)Ov
erheads 27.
025 43.
24 21.
62

(
2.5*
10.
81) (
4*10.
81) (
2*10.
81)

Tot
alcostperuni
t 93.
025 107.
24 55.
62

No.ofuni
ts 60000 40000 16000

Tot
alcost 5581500 4289600 889920

b)Comput
ati
onofpr
oductcostusi
ngABC
St
ep1:Comput
ati
onofcostdri
verr
ate

Costpool Budget
ed CostDr
iver Budget
ed Cal
cul
ati
on Rateper
over
head vol
ume cost

Setup 60000 No.ofpr

oduct
ionr
uns 60 60000/
60 1000

Machi
ne 1520000 Machi
nehour
s 294000 1520000/
294000 5.
17

Recei
vi
ng 870000 No.ofr
ecei
pts 1080 870000/
1080 805.
55

Packi
ng 500000 No.ofdel
i
ver
ies 64 500000/
64 7812.
5

Engi
neer
ing 746000 No. of pr
oduct
ion 100 746000/
100 7460
or
der
s

St
ep2:
Comput
ati
onofpr
oductcost

Par
ti
cul
ars P 60000 Q40000 R16000

Tot
al Per Tot
al Per Tot
al Peruni
t
uni
t uni
t

Raw 3000000 50 1600000 40 352000 22

mater
ial

Di
rectl
abor 960000 16 960000 24 192000 12

Pr
imecost 3960000 66 2560000 64 544000 34

(
+)
Over
heads

Setup 6000 0.
1 14000 0.
35 40000 2.
5

(
1000*
6) (
1000*
14) (
1000*
40)

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Machi
ne 775500 12.
93 413600 10.
34 330880 20.
68

(
5.17*
2.5*
60000) (
5.17*
2*40000) (
5.17*
4*16000)

Recei
vi
ng 48333 0.
81 112777 2.
82 708884 44.
30

(
805.
55*
60) (
805.
55*
140) (
805.
55*
880)

Packi
ng 140625 2.
34 46875 1.
17 312500 19.
53

(
7812.
5*18) (
7812.
5*6) (
7812.
5*40)

Engi
neer
ing 223800 3.
73 149200 3.
73 373000 23.
31

(
7460*
30) (
7460*
20) (
7460*
50)

Totalcost& 5154258 85.

91 3296452 82.
41 2309264 144.
329
perunit

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