A B 1 ABC In Class Hands On Example - Information Page 2 BUDGETED (PROJECTED) FOR YEAR 202X 3 4 Units To Be Produced for the Year 5 D.L. Hours to Produce for the Year 6 D.L. Cost for the Year 7 D.M Cost for the Year 6969 8 Machine Hours for the Year 9 Inspection Hours for the Year 10 Engineering Hours for the Year 11 Facility Use (Square Feet) for the Year 12 13 E Product A Product B Product C Totals 90,000 85,000 8,500 183,500 135,000 125,000 1,000 261,000 $ 1,200,000 $ 1,300,000 $ 19,000 2,519,000 $ 2,750,000 $ 4,500,000 $ 1,000,000 8,250,000 25,000 31,000 80,000 136,000 11,000 8,000 19,000 500 10,000.00 500 3,000 4,000 5,000.00 5,000.00 20,000.00 14 15 Projected Budgeted Overhead 16! 17 Machine Cost Pool 18 Inspection Cost Pool 19 Engineers Cost Pool Amount Cost Pool Driver 555 $ $ 800,000 Machine Hours 550,000 Inspection Hours $ 20 Facility & General Cost Pool $ 21 TOTAL BUDGETED O.H. $ 350,000 Engineering Hours 600,000 Square Footage 2,300,000 22 23 Step #1 Calculate the ABC Overhead Application Rate 24 25 Step #2 - Assign the Direct Material Costs, Direct Labor Costs and Apply Overhead to the Actual January Results 26 27 28 ACTUAL RESULTS FOR JANUARY 202X: 29 30 Units Produced 31 D.L. Hours to Produce 32 D.L. Cost 33 D.M Cost 34 Machine Hours 35 Inspection Hours 36 Engineering Hours 37 Facility Use (Square Feet) Product A Product B Product C Totals 7,200 10,500 7,000 800 15,000 9,500 90 20,090 6959 90,500.00 $ 100,000.00 $ 1,900.00 $ 192,400.00 $ 220,000.00 $ 350,000.00 $ 80,000.00 $ 650,000.00 2,500 3,200 6,500 12,200 700 900 1,600 35 10,000.00 42 260 337 6,000.00 5,000.00 21,000.00