NOR SALIHAH ZULKIFLEE

TUTORIAL ( CHAPTER 8 )

8.8)

ACTIVITY ACTIVITY EXAMPLES OF

CLASSIFICATION ACTIVITIES MEASURE
a) DL worker assemble a Unit-level
product
b) product are desingned by Product -level Desingning of product
engineers
c) equipment is set up Batch-level Setting up equipment
d) machines are used to Unit-level
shape & cut materials
e) monthly bills are sent out Customer-level
to regular customer
f) materials are moved from Batch-level
the receiving dock to
product lines
g) all completed units are Unit-level
inspected for detects

8.9)
1)

ACTIVITY ESTIMSTED OH TOTAL ACTIVITY RATE

COST
a)MACHINE $72 000 400 $180
SETUPS
b)SPECIAL $200 000 5000 $40
PROCESSING
c)GENERAL $816 000 24 000 $34
FACTORY

2) OH COST HUBS :

ACTIVITY COST RATE ACTIVITY ABC COST

POOL
a)M.S $180 100 $18000
b)S.P 40 5000 200 000
c)G.F 34 8000 272 000
TOTAL OH COST $490 000
3) OH COST SPROCKETS :

ACTIVITY COST RATE ACTIVITY ABC COST

POOL
a)M.S $180 300 $54000
b)S.P 40 - -
c)G.F 34 16000 $544000
TOTAL OH COST $598000

PRODUCT COST :

HUBS SPROCKTES
DM $32 $18
DL 12 6
MOH 49 14.95
UNIT PRODUCT COST $93 $38.95

8.10)

DISTRIBUTION OF RESOURCES CONSUMPTION ACROSS ACTIVITIES

OC PD&W POAT OA TOTALS
a)TW $8000 $104000 $32000 $16000 $160000
b)ABMS 11250 3750 22500 37500 75000
c)BMS 4000 - 8000 68000 80000
TOTAL $23250 $107750 $62500 $121500 $315000
COST

8.11)

ACTIVITY TOTAL COST TOTAL ACTIVITY ACTIVITY RATE

OA $23250 500 $46.50
PD&W 107750 100000 1.08
POCT 62500 5000 12.50

8.12)

ACTIVITY COST ACTIVITY ACTIVITY RATE COST (ABC)

POOL
a)OS 200 R16.85 R3370
b)CO - 320 -
c)PT 4 89 356
d)S 2 1090 2180
COST OH R5906
8.18)

1)

VOLUME ORDER CUSTOMER OTHER TOTAL

RELATED RELATED SUPPORT
A)WAGES $120 000 $90 000 $60 000 $30 000 $ 300 000
&
SALARIES
B) OTHER 30 000 10 000 20000 40 000 100 000
OH COST
T/COST $150 000 $100000 $80 000 $70 000

2)
ACTIVITY COST TOTAL COST ACTIVITY RATE
POOL
a)VR $150 000 20 000 DLHs $7.5/DLHs
b)OR 100 000 400 orders $250/orders
c)CS 80 000 200 customers $400/customer
d)O 70 000 Not applicables Not applicables

3)

ACTIVITY COST ACTIVITY RATE COST

POOL
VR 20(10×2) $7.5 $150
OR 1 250 250
CS - 400 -
$400
4)
SALES $3000
COST;
DM $1800
DL 500
VOLUME RELATED OH 150
ORDER RELATED OH 250
CUSTOMER S OH -
$2700
CUSTOMER MARGIN $300