ABC COSTING

EXAMPLE

A B
COST/UNIT
MATERIAL 5 10
LABOUR 10 5
OVERHEADS 3.902031 3.787667

18.90203 18.78767

PRICE 20 20

PROFIT/UNIT 1.097969 1.212333

profit/unit by abs costing -0.67 2.17

ACTIVITIES COST DRIVER

MACHINING MACHINE HOURS
QUALITY CONTROL AND INSPECTION NO. OF PRODUCTION RUNS hum har batch kay baad quality check k
RECEIVING NO. OF COMPONENTS RECEIPTS
PACKING no. of customers orders

MACHINE HOURS A B C
UNITS 20000 25000 2000
MACHINE HR / UNIT 2 2 2

40000 50000 4000

94000
ABC COSTING

C 9

10
5
8.633849 b 10
c
23.63385 d

20

-3.633849
2.17
OVERHAEDS
ABR A B C
0.585106 23404.26 29255.32 2340.426 ABR* TOTAL NUM. OF MACHINE HOUR
atch kay baad quality check kar rahy hoongy 3600 36000 46800 7200
1363.636 13636.36 13636.36 2727.273
250 5000 5000 5000

total 78040.62 94691.68 17267.7

per unit 3.902031 3.787667 8.633849
AL NUM. OF MACHINE HOURS
50000 20 50000
20