案例解答 pany.pptx

1. How does Wilkerson’s existing costing system operate?
Machine
Expense
$336k
Set-Up
Labour
$40k
Receiving/
Prod. Control
$180k
Packaging/
Shipping
$150k
Engineering
$100k
Production Cost
Centre
$806k
Valves, Pumps,
Flow Controllers
300% x Direct Labour Cost
Direct material $
Direct labour $
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1. Product Profitability Analysis (current system)
Valves
$
Pumps
$
Flow Controllers
$
Direct labour



Direct materials



Overheads (= 300% x Direct labour)



Total cost



Price



Margin (%)

(%)

(%)

(%)
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2 a) ABC Cost Drivers
Activity
Cost
$
Cost Driver
ponents
336,000
Machine hours
Set up machines
40,000
No. of production runs
Receive and ponents
180,000
No. of production runs
Provide engineering support
100,000
Engineering hours
Pack and ponents
150,000
No. of shipments
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2 b) ABC Cost Driver Rates
Activity
Cost
$
Cost Driver
Activity
Cost Driver Rate
ponents
336,000
Machine hours
11,200
$30/m/c hr
Set up machines
40,000
No. of production runs
160
$250/run
Receive and ponents
180,000
No. of production runs
160
$1,125/run
Provide engineering support
100,000
Engineering hours
1,250
$80/eng. hr
Pack and ponents
150,000
No. of shipments
300
$500/
shipment
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2 c) ABC Overhead Analysis: Summary
Valves
Pumps
Flow Controllers
ABC Overhead/unit:
Machine-related



Set-up



Receiving and production control



Engineering



Packaging and shipping



Total



Under current system



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2 c) ABC Overhead Analysis: Detailed Workings: Valves
1
Cost Driver Rate
2
Activity for Valves
3 = 1 x 2
Allocation to Valves in Total
$
4 = Column 3/7500
Per unit Cost
$
ABC Overhead
Machine-related
$30/m/c hr
3,750
112,500

Set-up