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    Tugas Akmen 2023

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    tuti
    The document provides information about Carter Company, which manufactures two products, Deluxe and Regular. It currently uses a traditional volume-based costing system to allocate overhead costs. The document then provides budgeted overhead costs, production activity information, and cost drivers for each activity that would be used in an activity-based costing system. It asks to calculate the unit costs for each product under the current and proposed ABC system. Calculating the unit costs under both systems shows that the volume-based system understates the unit cost of Regular and overstates the unit cost of Deluxe compared to the more accurate activity-based system.

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    Tugas Akmen 2023

    Uploaded by

    tuti
    32 views11 pages
    The document provides information about Carter Company, which manufactures two products, Deluxe and Regular. It currently uses a traditional volume-based costing system to allocate overhead costs. The document then provides budgeted overhead costs, production activity information, and cost drivers for each activity that would be used in an activity-based costing system. It asks to calculate the unit costs for each product under the current and proposed ABC system. Calculating the unit costs under both systems shows that the volume-based system understates the unit cost of Regular and overstates the unit cost of Deluxe compared to the more accurate activity-based system.

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    TUGAS AKMEN 2023

    Original Title

    TUGAS AKMEN 2023

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    The document provides information about Carter Company, which manufactures two products, Deluxe and Regular. It currently uses a traditional volume-based costing system to allocate overhead costs. The document then provides budgeted overhead costs, production activity information, and cost drivers for each activity that would be used in an activity-based costing system. It asks to calculate the unit costs for each product under the current and proposed ABC system. Calculating the unit costs under both systems shows that the volume-based system understates the unit cost of Regular and overstates the unit cost of Deluxe compared to the more accurate activity-based system.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views11 pages

    Tugas Akmen 2023

    Uploaded by

    tuti
    The document provides information about Carter Company, which manufactures two products, Deluxe and Regular. It currently uses a traditional volume-based costing system to allocate overhead costs. The document then provides budgeted overhead costs, production activity information, and cost drivers for each activity that would be used in an activity-based costing system. It asks to calculate the unit costs for each product under the current and proposed ABC system. Calculating the unit costs under both systems shows that the volume-based system understates the unit cost of Regular and overstates the unit cost of Deluxe compared to the more accurate activity-based system.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 11

    NAMA : DAVID NEHEMIA SABARWAN

    KELAS : REGULER 43

    NIM : 123012211067

    Volume-Based Costing versus ABC Carter Company manufactures two products, Deluxe and
    Regular, and uses a traditional two-stage cost allocation system. The first stage assigns all factory
    overhead costs to two production departments, A and B, based on machine hours. The second stage
    uses direct labor hours to allocate overhead to individual products. For the current year, the firm
    budgeted $1,000,000 total factory overhead cost. The $1,000,000 was for the planned levels of
    machine and direct labor hours shown in the following table:

    Production Department A Production Department B

    Machine hours 4,000 16,000

    Direct labor hours 20,000 10,000

    The following information relates to the firm’s operations for the month of January:

    Deluxe Regular Units produced and sold 200 800

    Unit cost of direct materials $100 $50

    Hourly direct labor wage rate $25 $20

    Direct labor hours in Department A per unit 2 2

    Direct labor hours in Department B per unit 1 1


    Carter Company is considering implementing an activity-based costing system. Itsmanagement accountant has collected the following
    information for activity cost analysis for the current year:

    Budget Overhead
    Activity cost Analis Cost Driver Budget Quantity Driver Consumption
    $
    DELUXE REGULAR

    Material Movement 7.000 Number of Pro. Run 350 15 20

    Machine Setups 400.000 Number of Setups 500 25 50

    Inspections 588.000 Number of Unit 19600 200 800

    Shipment 5.000 Number of Shipment 250 50 100

    Total Overhead 1.000.000


    Required

    1. Calculate the unit cost for each of the two products under the existing volume-based costing system.

    2. Calculate the overhead per unit of the cost driver under the proposed ABC system.

    3. Calculate the unit cost for each of the two products if the proposed ABC system is adopted.
    Activity Cost Drive Budgeted Overhead Budgeted Cost Activity
    Driver Qty Consumption Rate
    Number of 7,000 350 20/run
    production runs
    Number of setups 400,000 500 800/setups
    Number of units 588,000 19,600 30/units
    Number of 5,000 250 20/shipments
    shipments
    1,000,000
    • Perhitungan volume-based costing system untuk Reguler menghasilkan biaya per unit lebih tinggi
    dibandingkan perhitungan dengan ABC system
    • Perhitungan volume-based costing system untuk Deluxed menghasilkan biaya per unit lebih rendah
    dibandingkan perhitungan dengan ABC system

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