ABSORPTION COST

Overhead cost (production & nonproduction) 5,525,000 VND

Basis 650,000 Direct labour hours
OH Absorption rate 8.500 VND/DL hour
Activity used per unit
Coffee 0.25 hours
Fruit juice 0.80 hours
Milk tea 0.40 hours
OH cost per unit Materials cost
Coffee 2.125 4.500
Fruit juice 6.800 3.700
Milk tea 3.400 3.300

Coffee
Selling price 14.000
Unit cost 9.025
Profit (loss) 4.975

30000

ACTIVIT
Activity Cost pool Cost driver

Set up 1,285,658 Production runs

Running 1,601,500 Machine hours
Procurement 2,172,543 Purchase orders
Delivery 466,999 Deliveries
Total 5,525,000
ON COST

hours
hours
hours
Direct labour Full cost
2.400 9.025
1.800 12.300
2.100 8.800

Fruit juice Milk tea

12.000 13.000
12.300 8.800
-0.300 4.200

40000 50000

ACTIVITY -BASED COSTING

Cost driver volume OH absorption rate Activity used
Coffee Fruit juice Milk tea
250 5,143 60 150 40
673 2,380 105 400 168
90 24,139 15 50 25
145 3,221 30 75 40

Production and sales volume

Overhead cost per unit
Raw materials cost per unit
Direct labour cost per unit
Full cost per unit

Selling price
Unit cost
Profit (loss)
Production OH Cost (= Activity used *
Absorbtion rate)
Coffee Fruit juice Milk tea
308,558 771,395 205,705
249,863 951,857 399,780
362,091 1,206,968 603,484
96,620 241,551 128,827
1,017,131 3,171,772 1,337,797
120 580 300
8,476 5,469 4,459
4,500 3,700 3,300
2,400 1,800 2,100
15,376 10,969 9,859
Coffee Fruit juice Milk tea
14,000 12,000 13,000
15,367 10,969 9,859
(1,367) 1,031 3,141
 DIRECT MATERIAL PER UN
Coffee Fruit Juice
Material Quanlity Cost per tool Material
Roasted coffee 10g 2000 Orange
Water 200ml 500 Water
Fresh milk 50ml 1000 Sugar
Sugar 5g 500 Ice
Ice 100g 500
Total 4,500

OVERHEAD COST PER 1 UNIT

Material Coffee Fruit juice Milk tea
Unit
Beverage tools 1,000 1,500 800
Fridge 200 2,500 700
Plastic cup 100 100 200
Table and chair set 100 100 100
Water bill 150 1,500 300
Electricity bill 200 1,800 1,100
Others cost 375 800 1,000
Total 2,125 6,800 3,400

Wage (VND) Coffee Fruit juice Milk tea

Bartender 2,400 1,800 2,100
DIRECT MATERIAL PER UNIT
Fruit Juice Milk tea
Quanlity Cost per tool Material Quanlity
1 units 3000 Tea 5g
100ml 200 Boiling water 200ml
10g (optional) 400 Condensed milk 30ml
50g 100 Sugar 15g
Ice 50g
3,700

Production and sales volume per day (Unit)

Quality Coffee Fruit juice
7am - 9am 50 150
9am - 11am 20 80
11am - 1pm 10 120
1pm - 3pm 5 60
3pm- 5 pm 10 75
5pm - 7 pm 25 195
Total 120 680

MARGINAL COSTING
Items Quality (unit)
Sale ( all burger) 150
Direct materials 150
Direct labour 150
Variable Costs
Overhead cost 150
Total variable cost 150
Contribution margin No fixed cost require
Net incone
k tea
Cost per tool
2000
100
1000
150
50
3,300

r day (Unit)
Milk tea
40
65
25
20
60
90
300

COSTING
Price (VND) Total
12,000 1,800,000
4,500 675,000
2,400 360,000
6,800 1,020,000
1,300 195,000
ost require 2,250,000
-450,000