calculation of total cost as per ABC costing method based on actual volume

particulars valves pumps flow controllers total driver

no.of units manufacture 7500 12500 4000 24000
direct materials 120000 250000 88000 458000
direct labour 75000 156250 40000 271250
prime cost 195000 406250 128000 729250
manufacturing overhead
machine expenses 112500 187500 36000 336000 11200
set up labor 2500 12500 25000 40000 160
receiving & prodn cntrl 11250 56250 112500 180000 160
engineering 20000 30000 50000 100000 1250
packaging and shipping 5000 35000 110000 150000 300
total manufacturing overheads 151250 321250 333500 806000
cost of goods sold 346250 727500 461500 1535250
operating profit 298750 360000 -41500 617250
sales 645000 1087500 420000 2152500
% of profit/loss on sales 46.32% 33.10% -9.88% 28.68%

calculation of cost/unit
particulars valves pumps flow controllers
no.of units manufacture 7500 12500 4000
direct materials 16 20 22
direct labour 10 12.5 10
prime cost 26 32.5 32
manufacturing overhead
machine expenses 15 15 9
set up labor 0.333333 1 6.25
receiving & prodn cntrl 1.5 4.5 28.13
engineering 2.666667 2.4 12.5
packaging and shipping 0.666667 2.8 27.5
total manufacturing overheads 20.16667 25.7 83.375
cost of goods sold 46.16667 58.2 115.375
operating profit 39.83333 28.8 -10.375
sales 86 87 105
% of profit/loss on sales 46.32% 33.10% -9.88%
l volume
cost driver rate

30
250
1125
80
500
 calculation of total cost as per ABC costing method based on full capacity
particulars valves pumps flow controllers total
no.of units manufacture $ 7,500 $ 12,500 $ 4,000 $ 24,000
direct materials $ 120,000 $ 250,000 $ 88,000 $ 458,000
direct labour $ 75,000 $ 156,250 $ 40,000 $ 271,250
prime cost $ 195,000 $ 406,250 $ 128,000 $ 729,250
manufacturing overhead
machine expenses $ 105,000 $ 175,000 $ 33,600 $ 336,000
set up labor $ 2,222 $ 11,111 $ 22,222 $ 40,000
receiving & prodn cntrl $ 10,000 $ 50,000 $ 100,000 $ 180,000
engineering $ 20,000 $ 30,000 $ 50,000 $ 100,000
packaging and shipping $ 3,750 $ 26,250 $ 82,500 $ 150,000
total manufacturing overheads $ 140,972 $ 292,361 $ 288,322 $ 806,000
cost of goods sold $ 335,972 $ 698,611 $ 416,322 $ 1,535,250
operating profit $ 309,028 $ 388,889 $ 3,678 $ 617,250
sales $ 645,000 $ 1,087,500 $ 420,000 $ 2,152,500
% of profit/loss on sales 47.91% 35.76% 0.88% 28.68%

particulars
no.of units manufacture
direct materials
direct labour
prime cost
manufacturing overhead
machine expenses
set up labor
receiving & prodn cntrl
engineering
packaging and shipping
total manufacturing overheads
cost of goods sold
operating profit
sales
% of profit/loss on sales
calculation of cost/unit
valves pumps flow controllers
$ 7,500 $ 12,500 $ 4,000
$ 16 $ 20 $ 22
$ 10 $ 13 $ 10
$ 26 $ 33 $ 32
$ 14 $ 14 $ 8
$ 0 $ 1 $ 6
$ 1 $ 4 $ 25
$ 3 $ 2 $ 13
$ 1 $ 2 $ 21
$ 19 $ 23 $ 72
$ 45 $ 56 $ 104
$ 41 $ 31 $ 1
$ 86 $ 87 $ 105
47.91% 35.76% 0.88%
ull capacity
driver cost driver rate ideal capacity

$ 12,000 $ 28 $ 22,400
$ 180 $ 222 $ 4,444
$ 180 $ 1,000 $ 20,000
$ 1,250 $ 80 $ -
$ 400 $ 375 $ 37,500