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Units produced
Direct labor hours
Direct labor dollars
Machine-hours
Direct material dollars
Units
(of
driver) Theoretical
Practical
Expected actual
Normal
Time
Functional-Based Costing: Plantwide Rate
Overhead Costs
Belring, Inc.
Fabrication Assembly
Activity Usage
Measures
Belring, Inc.
Product-Costing Data
Activity Activity Cost
Setups $120,000
Material handling 60,000
Machining 100,000
Testing 80,000
Total $360,000
Overhead Activities
Belring, Inc.
Predetermined Budgeted (estimated) cost
Overhead Rate =
Estimated activity usage
Predetermined $360,000
Overhead Rate =
100,000 DLH
Predetermined
Overhead Rate = $3.60 per DLH
The total overhead
assigned to actual
production is called
applied overhead.
Overhead rate
Applied
= x
overhead
Actual activity
output
Belring, Inc.
Applied
= Overhead rate x Actual activity output
overhead
= $360,000
Per-Unit Cost
Belring, Inc.
Cordless Regular
Prime costs $ 78,000 $ 738,000
Overhead costs:
$3.60 x 10,000 36,000 ---
$3.60 x 90,000 --- 324,000
Total manufacturing costs $114,000 $1,062,000
Units produced 10,000 100,000
Unit cost $ 11.40 $ 10.62
Functional-Based Costing Department Rate
Overhead Costs
Allocation
Assign Costs Driver Tracing
Direct Tracing
Belring, Inc.
Fabrication Assembly
= $252,000 + $108,000
= $360,000
Belring, Inc.
Per-Unit Cost: Departmental Rates
Cordless Regular
Prime costs $ 78,000 $ 738,000
Overhead costs:
($6.30 x 4,000) + ($1.35 x 3,000) 29,250 ---
($6.30 x 36,000) + (1.35 x 77,000) --- 330,750
Total manufacturing costs $107,250 $1,068,750
Units produced 10,000 100,000
Unit cost $ 10.73 $ 10.69
ABC: Two-Stage Assignment
Cost of Resources
Driver Driver
Assign Costs
Tracing Tracing
Activities
Driver
Assign Costs
Tracing
Products
Classification of Activities
Activity
Level
Filter
Activity Usage
Measures
Belring, Inc.
Product-Costing Data
Activity Activity Cost
Setups $120,000
Material handling 60,000
Machining 100,000
Testing 80,000
Total $360,000
Overhead Activities
Belring, Inc.
Product Diversity: Consumption Ratios
Overhead Cordless Regular Activity
Activity Phone Phone Driver
a a
Setups 0.67 0.33 Production runs
Material
b b
handling 0.67 0.33 Number of
moves c c
Sumber:
Hansen&Mowen,2009
44
VALUE-ADDED ACTIVITIES
• Memenuhi kondisi
▫ Dibutuhkan untuk memenuhi ketentuan hukum
▫ Discretionary, jika simultan memenuhi:
Menghasilkan perubahan kondisi
Tidak dapat dicapai dari aktivitas sebelumnya
Memungkinkan aktivitas lain dilakukan
▫ Performed at a value-added cost to achieve
perfect efficiency
• Eliminate waste & reduce costs
48 2
LO
NON-VALUE-ADDED ACTIVITIES
• Are unnecessary
• Fail to satisfy 3 defining conditions of value-added
activities
• Incur non-value-added costs of inefficiency
Ex:
• Scheduling
• Moving Challenge of activity
• Waiting analysis:
produce goods without using non-
• Inspecting value-added activities.
• Storing
49
REDUCING COSTS
• Activity elimination
▫ Focusing on non-value-added activities
• Activity selection
▫ Choosing among different sets of activities
• Activity reduction
▫ Reducing time, resources required
• Activity sharing
▫ Using economies of scale
COST REPORT: Step 1
50
COST REPORT: Step 2
51
52