MGT 5 Lecture Notes - Lecture 8: Activity-Based Costing, Khan Academy
24 Oct 2018
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Step 2 and step 4 (proportional relationship) Abc costing (activity based costing) (driver %)(pool) = oh . Rm + wip = no change; any change that exists is in fg. **proof = check your work (may be asked for on exam, should do regardless of whether or not you"re asked) 18,750+(9,450/3)=21,900 break even point that we found earlier, but this time using another. 17,830+(12,210/3)=21,900 break even point with yet another benchmark. Budg oh/budg dr = pdohr (pdhor)(act dr) = oh applied can be in wip, fg, or cogs (depends on statement) If a job has mh, it"s at least in wip. Calculate variance and see if the applied is over or under actual spending. The percentage of work in each area is directly related to driver consumption. The calculation in the chart can be done for cc and dm. Need to use more than one driver to get better pricing and cost allocation.
