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Classic Pen Company
Classic Pen Company
Classic Pen Company
10000 8000.00
4000 3200.00
8000
14000
Activities
Handling production run
Activity Based Cos
Setup Blue Black
Maintaining records Sales 75000.00 60000.00
Production run Material costs 25000.00 20000.00
Direct labor 14000.00 11200.00
Overhead
1. Handling production 7333.00 7334.00
2. Setup 4258.00 1065.00
3. Maintaining records 1200.00 1200.00
4. Production run 7000.00 5600.00
Total operating income 16209.00 13601.00
Return on sales 0.22 0.23
Maintaining records Allocated Indirect expenses Amount
2000 20000 Indirect labor 20000
800 8000 Fringe benefits 16000
2000 10000 Computer systems 10000
Machinery 8000
14000 Maintenance 4000
Energy 2000
4800 52000 Total 60000
Based Costing
Red Purple Total
13950.00 1650.00 150600.00
4680.00 550.00 50230.00
2520.00 280.00 28000.00