Calculation of total cost based on ABC Method

Particulars Ratio Blue Black Red Purpule

Total Sales $ 75,000 $ 60,000 $ 13,950 $ 1,650
NO. of Units $ 50,000 $ 40,000 $ 9,000 $ 1,000

Direct Materials $ 25,000 $ 20,000 $ 4,680 $ 550

Direct Labour $ 10,000 $ 8,000 $ 1,800 $ 200
Prime Cost $ 35,000 $ 28,000 $ 6,480 $ 750
Indirect Costs
Indirect Labour 20000
Cost: Indirect labour 50% $ 3,333.33 $ 3,333.33 $ 2,533.33 $ 800.00
Cost Driver: Production run 50 50 38 12
Cost:Indirect labour 40% $ 3,041.83 $ 760.46 $ 3,467.68 $ 730.04
Cost Driver : Set-up 200 50 228 48
Cost:Indirect labour 10% $ 500.00 $ 500.00 $ 500.00 $ 500.00
Cost Driver: Parts admin 1 1 1 1
Cost: Fringe Benefits $ 6,750.06 $ 5,037.52 $ 3,320.41 $ 892.02
Cost Driver: 40% of labour
Computer System 10000
Cost: Computer system 80% $ 2,666.67 $ 2,666.67 $ 2,026.67 $ 640.00
Cost Driver: Production run 50 50 38 12
Cost: Computer system 20% $ 500.00 $ 500.00 $ 500.00 $ 500.00
Cost Driver: Parts admin 1 1 1 1
Cost: Machine $ 4,000.00 $ 3,200.00 $ 720.00 $ 80.00
Cost Driver: Units Produced 50000 40000 9000 1000
Cost: Maintainence $ 2,000.00 $ 1,600.00 $ 360.00 $ 40.00
Cost Driver: Units Produced 50000 40000 9000 1000
Cost: Energy $ 1,000.00 $ 800.00 $ 180.00 $ 20.00
Cost Driver: Units Produced 50000 40000 9000 1000
Total Cost $ 58,791.89 $ 46,397.97 $ 20,088.09 $ 4,952.05
Profit $ 16,208.11 $ 13,602.03 $ -6,138.09 $ -3,302.05
Rate of Profit 21.61% 22.67% -44.00% -200.12%
Total
$ 150,600
$ 100,000

$ 50,230
$ 20,000
$ 70,230

10000 50% of 20000

150
8000 40% of 20000
526
2000 10% of 20000
4
$ 16,000.00 sum of direct labour and indirect labour costs

8000
150
2000
4
$ 8,000.00
100000
$ 4,000.00
100000
$ 2,000.00
100000
$ 130,230.00
$ 20,370.00
13.53%