Management Accounting By Paresh Shah Oxford University Press Chapter No.

19 Chapter Name Activity Based And Target Costing

Dear Student / Reader, To have on-hand experience, do exercises, by using following templates. Please fill the data in ORANGE colour cell, for following Illustrations. Illustration No. 3 6

The Answer will appear in BLUE colour. If your answer is right, a message will appear as "Answer is Right". Till you get the message on screen, go on exercising it, to achieve the required level of skill and competency.

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equired level of skill and competency.

Modern India Limited ABC Method Total production overhead costs based on machine hours weightage
Hours

Product A Product B Product C Total Cost of Activities Set ups Materials Handling Machinery Inspections Total

0 Rs.

Allocation of Activity wise costs among products Activities Set up Materials handling Machinery Inspection Total Number of units Production Cost per Unit Total (Rs.) 0 0 0 0 0 Product A Product B (Rs.) (Rs.)

0 1 0.00

0 1 0.00

Calculation of costs per product Product cost per unit Materials Labour Production overhead Total

Product Product B Product C A

Product C (Rs.)

0 1 0.00

Statement of operating income and gross margin percentage for each of its three distribution channels
General Super Markets Revenue (in Rs.) Less: Cost of Goods Sold (in Rs.) Gross Margin (in Rs.) Less: Other Operating Costs (in Rs.) Operating Income (in Rs.) Gross Margin (in %) 1 1

100.00

Drugstore Chains 1 1

Chemist Shops 1 1

Total 3 0 3 3 100.00

100.00

100.00

4.96