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ABC Company has been allocating indirect costs based on budgeted labor hours. ABC s total indirect costs amounted to INR 4 5 0 , 0
ABC Company has been allocating indirect costs based on budgeted labor hours. ABCs total indirect costs amounted to INR ABC produces three products, X Y and Z Key production and sales details associated with the three products are as follows:
A B C
Direct Material DM
Direct Labor DL
DM Rate pu
DL Rate per hour
Setup hours
Kw Hrs
Units sold
Selling Price pu
ABC Inc. decided to shift to an Activity Based Cost allocation method. A breakup of the indirect costs and their drivers is provided in the below given table.
Cost Driver
Machine Setup Set up Time
Material Handling DM Units
Electricity Kw Hrs
Quality Control Sales Value
Based on the above given information fill in the below given tables Show as many individual line items as possible:
Traditional Method
Product A B C
Profit
Activity Based Costing Method
Product A B C
Profit
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