Tham khảo tài liệu 'pearson education of management accounting_5', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | ACTIVITY-BASED COSTING 141 Figure Traditional versus activity-based costing Traditional approach Overheads are first assigned to product cost centres Product cost centre 1 Product cost centre 2 Product cost centre 3 Overheads are then allocated to cost units using an overhead recovery rate Cost centre overhead recovery rate 1 Cost centre overhead recovery rate 2 Cost centre overhead recovery rate 3 Products ABC approach Overheads are first assigned to cost pools Activity cost pool 1 Total overheads Activity cost pool 3 Activity cost pool 4 Activity cost pool 2 With the traditional approach overheads are first assigned to product cost centres and then absorbed by cost units based on an overhead recovery rate using direct labour hours worked on the cost units or some other approach for each cost centre. With activity-based costing overheads are assigned to cost pools and then cost units are charged with overheads to the extent that they drive the costs in the various pools. Source Adapted from Innes J. and Mitchell F. Activity Based Costing A Review with Case Studies CIMA Publishing 1990. 142 CHAPTER 5 COSTING AND PRICING IN A COMPETITIVE ENVIRONMENT Example Comma Ltd manufactures two types of Sprizzer - Standard and Deluxe. Each product requires the incorporation of a difficult-to-handle special part one of them for a Standard and four for a Deluxe . Both of these products are made in batches large batches for Standards and small ones for Deluxes . Each new batch requires that the production facilities are set up . Details of the two products are Standard Deluxe Annual production and sales - units 12 000 12 000 Sales price per unit 65 87 Batch size - units 1 000 50 Direct labour time per unit - hours 2 21 2 Direct labour rate per hour 8 8 Direct material cost per unit 22 32 Number of special parts per unit 1 4 Number of set-ups per batch 1 3 Number of separate material issues from stores per batch 1 1 Number of sales invoices issued per year 50 240 In recent
