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So activity based costing two stage procedure direct

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Unformatted text preview: o ?? Activity-Based Costing-Two Stage Procedure Direct Materials Direct Labour Shipping Costs Overhead Costs Costs First-Stage Allocation figure out cost poll and cost driver Customer Orders Product Design Order Size Customer Relations Other SecondSecond-Stage Allocations $/Order $/Design $/MH $/Customer per unit amount Cost Objects: Products, Customer Orders, Customers Unallocated Steps Steps in designing ABC systems Identify activities that consume resources. Assign resource costs to activity cost pools. Identify cost drivers for each cost pool. cost drivers for each cost pool Compute overhead rate for each cost pool: Rate = Estimated overhead costs in activity cost pool Estimated number of activity units Assign costs to products or cost objects: Overhead Rate Actual ! Activity Activity-Based Costing 8 4 4 Comparison of Traditional and Activity-Based Systems Calculate the activity rate for each activity cost driver. for Activity Activity-B...
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This document was uploaded on 03/13/2014 for the course RSM RSM222 at University of Toronto.

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