session4_part2_student (1-slide per pg)

Session4_part2_student(1-slide per pg)

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Unformatted text preview: ased Costing Analysis Costing Analysis Activity Driver Engineering hours Number of setups Machine-hours Number of packing orders Cost $ 125,000 300,000 1,500,000 75,000 Activity Comsumption 12,500 300 150,000 15,000 Activity Rate $ 10 1,000 10 5 $125,000 ÷ 12,500 = $10 per engineering 12,500 hour ! "#$%&'()*+,-.//%01%2332 Activity-Based Costing 8 4 4 Comparison of Traditional and Activity-Based Systems Special Model Number Activity Activity of Activity Driver Rate Activities Engineering hours $ 10 5,000 Number of setups Number of setups 1,000 200 200 M achine-hours 10 50,000 Number of packing 5 5,000 Production volume = 5,000 units Total OH $ 50,000 200,000 200,000 500,000 25,000 $ 775,000 Unit Unit OH $ 10 40 40 100 5 $ 155 "#$%&'()*+,-.//%01%2332 $50,000 ÷ 5,000 != $10 per unit $50,000 Activity-Based Costing 8 4 4 Comparison of Traditional and Activity-Based Systems Regular Model Activity N umber Activity Driver R ate of Engineering hours $ 10 7,500 Number of setups 1,000 100 Machine-hours 10 100,000 Number of packing orde Number of packing orde 5 10 10,000 Production volume = 15,000 units Total OH $ 75,000 100,000 1,000,000 50 50,000 $ 1,225,000 Unit OH $ 5.00 6.67 66.67 3.3...
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This document was uploaded on 03/13/2014 for the course RSM RSM222 at University of Toronto- Toronto.

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