Activity Based Product

Costing
Presented by:
Zainal Abidin, S.E.,M.Ak.,Ak
Learning Objectives
1. Discuss the importance of unit costs
2. Describe functional-based costing approaches
3. Tell why functional-based costing approaches may produce
distorted costs
4. Explain how an activity-based costing works for product costing
5. Explain how the number of acitivity rates can be reduced
Unit Costs
FBC ABC

assigns cost

Cost Object

𝐓𝐨𝐭𝐚𝐥 𝐂𝐨𝐬𝐭
Unit Cost 𝑇  𝑡
𝐔𝐧𝐢𝐭𝐬 𝐨𝐟 𝐂𝐨𝐬𝐭 𝐎𝐛𝐣𝐞𝐜𝐭
𝑈𝑛𝑖𝑡𝑠 𝑜𝑓𝐶𝑜𝑠𝑡 𝑂𝑏𝑗𝑒𝑐𝑡
Importance of Unit Product Costs
• Decisions concerning product and service design and introduction of new products and services
are affected by expected unit costs.

Decision to make or buy a product/service

To accept or reject a special order

To keep or drop a product/service

 FIRST-IN, FIRST-OUT (FIFO)
Illustration 6-6

6-5 337
Functional-Based Product Costing (Traditional
Costing)
Kenapa dinamakan functional-based product ? Karena driver yang
digunakan untuk membebankan pool biaya ke produk menggunakan unit
driver. Unit driver adalah driver yang di-drive oleh unit yang dihasilkan.
Examples of unit-level drivers include:
1. Machine hours (Jam Mesin)
2. Direct labor hours (JTKL)
3. Direct material dollars (BBBL)
4. Direct labor dollars (BTKL)
5. Unit produced
Functional-Based Product Costing
(Traditional Costing)
Kenapa jam mesin disebut sebagai unit driver ? Karena semakin banyak
unit yang dihasilkan, maka semakin banyak jam mesin.
Misal:
1 Unit = 2 Jam Mesin
1.000 unit = 2.000 Jam mesin
5.000 = 10.000 jam mesin
 DRMC DLC FOH Plant
(Actual Cost) (Actual Cost) (Applied Cost)
Functional
Based

How to assign production cost Costing

Direct Tracing
Direct Tracing

1 Cost Pool Dept

to product ?
Unit Dirver 2

Activity ABC
Product A / B / C
Applied Overhead (Overhead yang Dibebankan)
 
Predetermined overhead rate =

Applied overhead = Overhead rate × Actual activity

The difference between the actual overhead and the applied overhead is
called an
overhead variance.
If the actual overhead > the applied overhead is called underapplied
overhead.
If the actual overhead < the applied overhead is called overapplied
overhead.
Computation of a Plantwide Rates
BelRing produces two telephones: a cordless phone and a regular model. The
company has the following estimated and actual data for the year 2008:

So, underapplied or overapplied ? And why ?

Unit-Cost Computation: Plantwide-Rate
Prime cost = BBB + BTKL
Conversion cost = BTKL + BOP
Computation of Departmental Rates
Bellring has two production
departments: fabrication and
assembly.
1. Fabrication is machine
hours
2. Assembly tends to be
direct labor hours

Actual DLH

Actual machine hours

1 Tentukan cost rate

 Unit-Cost Computation of Departmental Rates
Tentukan
2
Unit-Cost

Cordless
Regular

Misal penentuan harga jual $ 11,2 $ 11

Activity-Based Costing
Activity-Based Costing-Unit Cost
 Total overhead
Total driver

Cordless
Regular

Cordless
Regular

Cordless
Regular

Cordless
Regular
Comparison of Unit Costs
Misal penentuan harga $ 11,2 $ 11

Keuntungan functional based costing:

1. Lebih sederhana
2. Data perhitungan/ dasar perhitungannya mudah diperoleh

Keuntungan ABC:
3. Lebih akurat
4. Sangat kompleks dan biaya nya tidak murah