Activity-Based Costing and Activity-Based Management：作业成本法和基于活动的管理活动.pptVIP

Existing SingleIndirect-Cost Pool System Cole Corporation manufactures two types of lenses – a normal lens (NL) and a complex lens (CL). To cost products, Cole currently uses a single indirect-cost rate job costing system. The cost objects are the total costs of manufacturing and distributing 80,000 normal lenses (NL) and 20,000 complex lenses (CL). Existing Single Indirect-Cost Pool System Normal Complex Lenses (NL) Lenses (CL) Direct materials $1,520,000 920,000 Direct mfg. labor 800,000 260,000 Total direct costs $2,320,000 $1,180,000 ÷ 80,000 ÷ 20,000 Direct cost per unit: $29 $59 Existing Single Indirect-Cost Pool System Indirect costs of $2,900,000 Grouped into a single overhead cost pool. Cost-allocation base: Direct manufacturing Labor-hours Normal Lenses (NL) 36,000Complex Lenses (CL) 14,000Total 50,000 What is the indirect cost rate? $2,900,000 ÷ 50,000 = $58 Existing Single Indirect-Cost Pool System Normal Complex Lenses (NL) Lenses (CL) 36,000 × $58 14,000 × $58 Allocated costs = $2,088,000 $812,000 Direct costs $2,320,000 $1,180,000 Total cost $4,408,000 $1,992,000 ÷ units 80,000 20,000 Cost per unit = $55.10 $99.60 Existing Single Indirect-Cost Pool System Normal Complex Lenses (NL) Lenses (CL) Suppose Price: $60.00 $142.00 Cost 55.10 99.60 Income $ 4.90 $ 42.40 Margin 8.2% 29.9% Refining a Costing System The sequence of steps to distribute lenses Design of products and process – The Design Department designs the molds and defines processes needed (details of the manufacturing operations). Manufacturing operations – Lenses are molded, finished, cleaned, and inspected. Shipping and distribution – Finished lenses are packed and sent to the various customers. Activity-Based Costing System Cole Corporation identified key activities: Design products and processes Set up molding machine Operate machines to manufacture lenses Maintain and clean the molds Set up batches of finished lenses for shipment. Distri