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Example ABC

The company registered 350,000 mu in salaries and 200,000 mu in other indirect costs for November. The company's activities are direct labor hours, number of orders, number of receivables, and a monetary unit cost. Salaries are distributed 30% to activity 1, 35% to activity 2, 25% to activity 3, and 10% to activity 4. Other indirect costs are distributed 40% to activity 1, 25% to activity 2, 20% to activity 3, and 15% to activity 4. The document asks to calculate the cost of a job that was produced for a client, given sales price, ordered quantity, direct materials cost, direct labor hours, and direct labor costs.

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57 views1 page

Example ABC

The company registered 350,000 mu in salaries and 200,000 mu in other indirect costs for November. The company's activities are direct labor hours, number of orders, number of receivables, and a monetary unit cost. Salaries are distributed 30% to activity 1, 35% to activity 2, 25% to activity 3, and 10% to activity 4. Other indirect costs are distributed 40% to activity 1, 25% to activity 2, 20% to activity 3, and 15% to activity 4. The document asks to calculate the cost of a job that was produced for a client, given sales price, ordered quantity, direct materials cost, direct labor hours, and direct labor costs.

Uploaded by

Madalina Dumitru
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Example ABC

3. A company registered for November the following indirect costs:


Salary: 350,000 mu;
Other indirect costs: 200,000 mu.
The analysis allowed the establishment of the following activities:

Activity Driver Driver’s


volume
A1 Number of direct labor hours 10,000 hours
A2 Number of orders 500 orders
A3 Number of receivables 100 receivables
A4 A monetary unit cost added -

Distribution of expenditure on activities are carried out as follows:

Expenses A1 A2 A3 A4 Total
Wages 30% 35% 25% 10% 100%
Other 40% 25% 20% 15% 100%
indirect costs

During the month a job was made for a client for whom we know the following:
sale price: 300 mu;
ordered quantity: 100 units;
direct materials: 22 mu / piece;
direct labor hours: 0.5 hours per piece;
direct labor costs: 25 mu per hour.
Calculate the cost of the job.

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