ex-1 Idaho potatoes

Traditional method
DM
OHC
Total cost
Num Kg.
Average Cost per kg

Total
150,000
983,000
1,133,000
1,000,000
1.13

ABC
DM
Packaging
OHC (1)
total
Cost per unit

Total
150,000
188,000
795,000
1,133,000

Cleaning
Cutting
Packaging

Cost
120,000
231,000
444,000
795,000

Cost pool
Cleaning
Cutting
Packaging
OHC (1)

Cost
120,000
231,000
444,000
795,000

reaill
135,000
180,000
756,000
1,071,000
1.19
Cost driver
kg raw potatos
Cuting hours
Packaging hours

Reaill
108,000
216,000
432,000
756,000

institutional
15,000
8,000
39,000
62,000
0.62

Other info.
Num. Of kg
Kg per cutting hour
Kg per packging hour
rate

1,200,000
3,850
37,000

Institutional
12,000
15,000
12,000
39,000

0.10
60
12

900,000
250
25
reaill
1,080,000
3,600
36,000

120%
100,000
400
100
institutional
120,000
250
1,000

EX-2
Total units
1,570,000
20,000
77,500
190,080
192,000
30,000

M
711,000
696,600
899,200
400,500
52,800
400,000
3,160,100

R
231,000
163,400
340,800
549,900
4,800
350,000
1,639,900

OHC per unit

143.64

409.98

Num. Units

22,000

4,000

DM
DL
MCOST
MOH cOst
Total cost per unit

M
208.00
18.00
144.00
143.64
513.64

R
584.00
42.00
72.00
409.98
1,107.98

Revenues
Cost of good sold

Selling and admon

8,499,900
43%
5,830,000

Selling price

900.0

1,140.0

Operating income

2,669,900

Gross margin
Margin

386.36
43%

Soldering
shipments
quality control
Purchase orders
Machine power
Machine Septups

Rate

Units of the cost allocation base

M
R
1,185,000
385,000
number of solder points
16,200
3,800
number of shipments
56,200
21,300
number of inspections
80,100
109,980
numbers of orders
176,000
16,000
machine hours
16,000
14,000
nmber of setups

Total cost
942,000
860,000
1,240,000
950,400
57,600
750,000
4,800,000

0.60
43.00
16.00
5.00
0.30
25.00

ABC
Soldering
shipments
quality control
Purchase orders
Machine power
Machine Septups
Total OHC

M
DM
DL
Machine cost
OHC
Cost of good sold

R
4,576,000
396,000
3,168,000
3,160,100
11,300,100

2,336,000
168,000
288,000
1,639,900
4,431,900

22,000

4,000

4,800,000

Num. Units

32.03
8,499,900
3%

Gross Margin

128,100

R
19,800,000
11,300,100

4,560,000
4,431,900
128,100
3%
978,000
-

849,900