Activity-Based Costing Example：基于活动的成本核算的例子.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 4-* ? Assign Activity Costs to Products 4-* Let’s look at anexample from theBilson Company. Activity-Based Costing Example 4-* Bilson, Inc. manufactures and sells 5,000 units of Product A (deluxe model), and 25,000 units of Product B (standard model) each year. Product A requires 3.0 direct labor hours (DLH) and Product B requires 2.5 DLH to produce. Employing a traditional costing system, Bilson assigns overhead cost to products using direct labor hours. The predetermined overhead rate is: Mfg. overhead cost Direct labor hours = $1,550,000 77,500 = $20/DLH Activity-Based Costing Example 4-* Bilson’s unit product costs using traditional costing are: Bilson marks its products up by 50 percent and allocatesits $500,000 customer service costs based on revenue. Activity-Based Costing Example 4-* $975,000 ÷ ($975,000 +$3,900,000) × $500,000 Traditional Costing $130.00 × 1.50 Activity-Based Costing Example 4-* Sales of Product A have increased steadily since introduction,but company income has declined. Management at Bilson isunhappy with the traditional costing system and they havedecided to try activity-based costing. In addition, management hasobserved that the cost of directlabor is relatively stable.Since labor does not behavelike a unit-level cost, labor willbe combined with overhead andthe total conversion costwill be assigned using ABC. Activity-Based Costing Example 4-* The total conversion cost is: Traditional overhead $1,550,000 Labor (77,500 hours @ $10) 775,000 Total $2,325,000 In addition, management hasobserved that the cost of directlabor is relatively stable.Since labor does not behavelike a unit-level cost, labor willbe combined with overhead andthe total conversion costwill be assigned using ABC. Activity-Based Costing Example 4-* Management has identified the following five