ABC In Class Hands On Example - Traditional Method Information Page
BUDGETED (PROJECTED) FOR YEAR 202X
	Product A	Product B	Product C	Totals
Units To Be Produced for the Year	90,000	85,000	8,500	183,500
D.L. Hours Projected for the Year	135,000	125,000	1,000	261,000
Projected Budgeted Overhead for the Year	Amount
TOTAL BUDGETED O.H.	$ 2,300,000
Step # 1 Calculate the Overhead Application Rate Using a Traditional Volume Based Driver for the Next Year
Use Direct Labor Hours as the Overhead Cost Driver
Step # 2 - Assign the Direct Material Costs, Direct Labor Costs and Apply Overhead Costs Based On the Actual January Results
ACTUAL RESULTS FOR THE MONTH OF JANUARY 202X
	Product A	Product B	Product C	Totals
Units Actually Produced	7,200	7,000	800	15,000
Actual D.L. Hours to Produce	10,500	9,500	90	20,090
Actual D.L. Cost	$ 90,500.00	$ 100,000.00	$ 1,900.00	$ 192,400.00
Actual D.M Cost	$ 220,000.00	$ 350,000.00	$ 80,000.00	$ 650,000.00