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Activity-Based vs Volume-Based Costing

1. The document calculates target prices and product costs for three product lines (standard, deluxe, heavy-duty) using a traditional volume-based costing system and an activity-based costing system. 2. Under the activity-based system, manufacturing overhead costs are allocated to each product line based on estimated activity usage, resulting in different per unit overhead costs for each product. 3. The document then calculates new target prices for each product line using total product costs from the activity-based system, resulting in lower target prices for the standard model and higher prices for the other models compared to the traditional system.

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Sholahuddin Al Ayyubi
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49 views2 pages

Activity-Based vs Volume-Based Costing

1. The document calculates target prices and product costs for three product lines (standard, deluxe, heavy-duty) using a traditional volume-based costing system and an activity-based costing system. 2. Under the activity-based system, manufacturing overhead costs are allocated to each product line based on estimated activity usage, resulting in different per unit overhead costs for each product. 3. The document then calculates new target prices for each product line using total product costs from the activity-based system, resulting in lower target prices for the standard model and higher prices for the other models compared to the traditional system.

Uploaded by

Sholahuddin Al Ayyubi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Menghitung target harga untuk ketiga model, berdasarkan sistem biaya produk
tradisional berbasis volume.

Product Line
Details
Standard Deluxe Heavy-Duty
Total product cost per unit $ 105.00 $ 215.00 $ 232.00
Target Price : (110% x total product cost) 1.10 x 105 1.10 x 215 1.10 x 232
= 115.50 = 236.50 = 255.20

2. Menghitung biaya produk baru untuk ketiga produk, berdasarkan data baru yang dikumpulkan
oleh pengontrol.

Estimated Product Line


Activity Cost Pool
Overhead Standard Deluxe Heavy-Duty
Depreciation, machine $ 1,480,000.00
40% 13% 47%
Maintenance, machine $ 120,000.00
  $ 1,600,000.00 $ 640,000.00 $ 208,000.00 $ 752,000.00
Engineering $ 350,000.00
47% 6% 47%
Inspection and repair of defects $ 375,000.00
  $ 725,000.00 $ 340,750.00 $ 43,500.00 $ 340,750.00
Purchasing, receiving, and shipping $ 250,000.00
47% 8% 45%
Material handling $ 400,000.00
  $ 650,000.00 $ 305,500.00 $ 52,000.00 $ 292,500.00
Depreciation, taxes, and insurance for
$ 300,000.00
insurance for factory 42% 15% 43%
Miscellaneous manufacturing overhead $ 295,000.00
Total $ 595,000.00 $ 249,900.00 $ 89,250.00 $ 255,850.00
 
Total manufacturing overhead by product $ 1,536,150.00 $ 392,750.00 $ 1,641,100.00

New manufacturing overhead = Total manufacturing overhead by product


  unit sales  

Product Line
Calculation
Standard Deluxe Heavy-Duty
1536150
$ 76.81 - -
20000
392750
- $ 392.75 -
1000
1641100
- - $ 164.11
10000

New product cost per unit :


Product Line
Details
Standard Deluxe Heavy-Duty
Raw material $ 10.00 $ 25.00 $ 42.00
Direct labor $ 10.00 $ 20.00 $ 20.00
Manufacturing overhead $ 76.81 $ 392.75 $ 164.11

Total product cost per unit $ 96.81 $ 437.75 $ 226.11

3. Hitung target harga baru untuk ketiga produk tersebut, berdasarkan sistem Biaya Berbasis
Aktivitas.

Product Line
Details
Standard Deluxe Heavy-Duty
Total product cost per unit $ 96.81 $ 437.75 $ 226.11
Target Price : (110% x total product cost) 1.10 x 96.81 1.10 x 437.75 1.10 x 226.11
= 106.49 = 481.53 = 248.72

4) Tulis memo kepada CEO perusahaan yang menjelaskan apa yang telah terjadi sebagai akibat

dari sistem biaya produk tradisional berbasis volume perusahaan.

Standard Model Electric Motor


Traditional, Volume-Based Product Costing System Activity-Based Costing System
Product cost $105.00 $96.81
Target Price $110.00 $106.

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