Sunshine Roadster Fireball TOTAL COST POOLS

units 2000 1600 400 deliveries to retailer 2400000

direct labor hrs/annum 200000 220000 80000 500000 setup cost 6000000
direct labor cost/annum 1000000 1100000 400000 purchase orders 3600000
material/unit 400 600 900 total overheads 12000000
total material 800000 960000 360000
selling price/unit 4000 6000 8000 COST DRIVER RATE
total sales revenue 8000000 9600000 3200000 no.of deliveries 9600
no.of deliveries 100 80 70 250 no.of setups 60000
no.of setups 35 40 25 100 no.of purchase orders 4500
no.of purchase orders 400 300 100 800
FULL PRODUCTION COST/U USING ABC
OVERHEADS AND OAR Sunshine
deliveries to retailer 2400000 direct labor 1000000
setup cost 6000000 material 800000
purchase orders 3600000 no.of deliveries 960000
total overheads 12000000 no.of setups 2100000
total direct labour hrs 500000 no.of purchase orders 1800000
OAR 24 total cost 6660000
total cost/u 3330
FULL PRODUCTION COST/U USING ABSORPTIONAL COSTING
Sunshine Roadster Fireball CALCULATION OF PROFIT/LOSS
direct labor 1000000 1100000 400000 cost/unit 3330
material 800000 960000 360000 selling price/unit 4000
poh 4800000 5280000 1920000 profit/u 670
total cost 6600000 7340000 2680000 loss/u
total cost/unit 3300 4587.5 6700 total profit 1340000
total loss
CALCULATION OF PROFIT/LOSS
cost/unit 3300 4587.5 6700
selling price/unit 4000 6000 8000
profit 700 1412.5 1300
total profit 1400000 2260000 520000 4180000
OST/U USING ABC
Roadster Fireball
1100000 400000
960000 360000
768000 672000
2400000 1500000
1350000 450000
6578000 3382000
4111.25 8455

4111.25 8455
6000 8000
1888.75 s
-455 total
3022000 4362000
-182000 -182000
4180000