Example 4 ABC

A company registered in November for one of its subsidiaries the following indirect costs:
Salary: 220,000 mu;
Other indirect costs: 85,000 mu.
The statement of activities identified is as follows:

Activity Driver’s
volume
A1 200
A2 50,000
A3 1,000
A4 -

For four activities a driver could not be identified and the value will be calculated as a
percentage of the added cost.
Distribution of expenditure by activity is as follows:

Expenses A1 A2 A3 A4 Total
Wages 60% 15% 20% 5% 100%
Other indirect costs 25% 25% 40% 10 100%
%

The lowest cost of a subsidiary of the company was:

- A1 124.35;
- A2 1.25;
- A3 48.9;
- A4 3.
Compare the cost of the two branches.