Expense Category Expense Treditional Income Statement

Indirect Labour $ 20,000.00 Blue Black

Fringe Benefits $ 16,000.00 Sales $ 75,000.00 $ 60,000.00
Computer System $ 10,000.00 Material Cost $ 25,000.00 $ 20,000.00
Machinery $ 8,000.00 Direct Labour $ 10,000.00 $ 8,000.00
Maintenance $ 4,000.00 Overheads $ 30,000.00 $ 24,000.00
Energy $ 2,000.00 Total Operating income $ 10,000.00 $ 8,000.00
Total $ 60,000.00 ROS 13.3% 13.3%

Direct Costs and Activity Cost Drivers

Blue Black
Prodiction and Sales (volume) 50000 40000
Unit selling price 1.5 1.5
Materials- unit cost 0.5 0.5
Direct Labour hrs/unit 0.02 0.02
Machine Hrs/unit 0.1 0.1
Production Runs 50 50
Setup time/Run 4 1
Total set up time (hrs) 200 50
Partsadministration 1 1
come Statement Direct Costs and Activit
Red Purple Total
$ 13,950.00 $ 1,650.00 $ 150,600.00 Indirect Labour 10,000
$ 4,680.00 $ 550.00 $ 50,230.00 Indirect Labour 8,000
$ 1,800.00 $ 200.00 $ 20,000.00 Indirect Labour 2,000
$ 5,400.00 $ 600.00 $ 60,000.00 Fringe Benefits 8,000
$ 2,070.00 $ 300.00 $ 20,370.00 Fringe Benefits 4,000
14.8% 18.2% 13.5% Fringe Benefits 3,200
Fringe Benefits 800
Computer System Expenses 8,000
Computer System Expenses 2,000
Activity Cost Drivers Machinery 8,000
Maintenance 4,000
Energy 2,000
Red Purple Total
9000 1000 100000
1.55 1.65 Blue
0.52 0.55 Production Runs 3,333
0.02 0.02 2000 Total Setup Time
0.1 0.1 10000 Part Administration
38 12 150 Direct Labour
6 4 Production Runs
228 48 526 Total Setup Time
1 1 4 Part Administration
Production Runs
Part Administration
Machine Hrs
Machine Hrs
Machine Hrs
Energy
Direct Costs and Activity Cost Drivers
Percentage Basis Comments
50% Production Runs
40% Total Setup Time
10% Part Administration
100% Direct Labour
50% Production Runs
40% Total Setup Time
10% Part Administration
80% Production Runs
20% Part Administration
Machine Hrs
Machine Hrs
Machine Hrs

Black Red Purple Total

3,333 2,533 800 10,000