Description
workings of Destin Brass Co., case in Management Accounting course.
KeyWords: Activity Based Costing
ABC Method
Total Cost No of Units Valves 7500 Pumps 12500 Flow controllers 4000
Material Handling Material receiving Engineering Packing and shipping Maintenance Depreciation
200,000 20,000 100,000 60,000 30,000 270,000
3 3 20 3.33 35 35 Valves
% of Transactions 19 78 19 78 30 50 23.33 73.33 58 7 58 7 Pumps 20.00 0.05 8.00 3.04 0.30 2.40 1.12 1.39 12.53 48.84 Flow controllers 22.00 0.48 6.40 39.00 3.90 12.50 11.00 0.53 4.73 100.53
Material Cost Set up Labour Run-labour Material Handling Material receiving Engineering Packing and shipping Maintenance Depreciation Total Cost (ABC method)
16.00 0.02 4.00 0.80 0.08 2.67 0.27 1.40 12.60 37.83
% change f
Last Month
Total Cost Profit (ABC Profit % (A
Revised Se % change f
Profit And Cost Comparison with Other Methods
Last Month Actual Selling Price Profit (ABC method) Profit % (ABC method) Traditional Costing (Currently used) Revised Costing (Proposed by peggy) Total Cost (ABC method) Traditional Profit Revised Profit Traditional Profit % Revised Profit % Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $19.95 35% $37.56 $49.00 $37.83 $20.22 $8.78 35% 15% $58.20 1% Pumps 81.26 $32.42 40% $63.12 $58.95 $48.84 $18.14 $22.31 22% 27% $75.13 -8% Flow controllers 97.07 ($3.46) -4% $56.50 $47.96 $100.53 $40.57 $49.11 42% 51% $154.66 59%
REVISED SELLING PRICE
Target Selling Price Total Cost (ABC method) Profit (ABC method) Profit % (ABC method) Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $37.83 $19.95 35% $58.20 1% Pumps 97.10 $48.84 $48.26 50% $75.13 -23% Flow controllers 86.96 $100.53 ($13.57) -16% $154.66 78%
REVISED SELLING PRICE
Last Month Actual Selling Price Total Cost (ABC method) Profit (ABC method) Profit % (ABC method) Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $37.83 $19.95 35% $58.20 1% Pumps 81.26 $48.84 $32.42 40% $75.13 -8% Flow controllers 97.07 $100.53 ($3.46) -4% $154.66 59%
Total Cost 1296700 1296215 1296282
% Change 0.0% 0.0% 0.0%
doc_445056837.xls
workings of Destin Brass Co., case in Management Accounting course.
KeyWords: Activity Based Costing
ABC Method
Total Cost No of Units Valves 7500 Pumps 12500 Flow controllers 4000
Material Handling Material receiving Engineering Packing and shipping Maintenance Depreciation
200,000 20,000 100,000 60,000 30,000 270,000
3 3 20 3.33 35 35 Valves
% of Transactions 19 78 19 78 30 50 23.33 73.33 58 7 58 7 Pumps 20.00 0.05 8.00 3.04 0.30 2.40 1.12 1.39 12.53 48.84 Flow controllers 22.00 0.48 6.40 39.00 3.90 12.50 11.00 0.53 4.73 100.53
Material Cost Set up Labour Run-labour Material Handling Material receiving Engineering Packing and shipping Maintenance Depreciation Total Cost (ABC method)
16.00 0.02 4.00 0.80 0.08 2.67 0.27 1.40 12.60 37.83
% change f
Last Month
Total Cost Profit (ABC Profit % (A
Revised Se % change f
Profit And Cost Comparison with Other Methods
Last Month Actual Selling Price Profit (ABC method) Profit % (ABC method) Traditional Costing (Currently used) Revised Costing (Proposed by peggy) Total Cost (ABC method) Traditional Profit Revised Profit Traditional Profit % Revised Profit % Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $19.95 35% $37.56 $49.00 $37.83 $20.22 $8.78 35% 15% $58.20 1% Pumps 81.26 $32.42 40% $63.12 $58.95 $48.84 $18.14 $22.31 22% 27% $75.13 -8% Flow controllers 97.07 ($3.46) -4% $56.50 $47.96 $100.53 $40.57 $49.11 42% 51% $154.66 59%
REVISED SELLING PRICE
Target Selling Price Total Cost (ABC method) Profit (ABC method) Profit % (ABC method) Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $37.83 $19.95 35% $58.20 1% Pumps 97.10 $48.84 $48.26 50% $75.13 -23% Flow controllers 86.96 $100.53 ($13.57) -16% $154.66 78%
REVISED SELLING PRICE
Last Month Actual Selling Price Total Cost (ABC method) Profit (ABC method) Profit % (ABC method) Revised Selling Prices (35% markup) % change from Actual SP 35% Valves 57.78 $37.83 $19.95 35% $58.20 1% Pumps 81.26 $48.84 $32.42 40% $75.13 -8% Flow controllers 97.07 $100.53 ($3.46) -4% $154.66 59%
Total Cost 1296700 1296215 1296282
% Change 0.0% 0.0% 0.0%
doc_445056837.xls