EKA 323 A3—AKUNTANSI MANAJEMEN

Dosen: I Putu Sudana

TUGAS INDIVIDU
PERTEMUAN 3
KAMIS, 25 FEBRUARI 2021

EXS. 5-1; 5-10 TERLAMPIR

Kerjakan exercise di atas dengan tulis tangan dalam kertas A4 atau loose leaf.
Dikirim dalam file PDF melalui OASE sebelum batas waktu yang ditetapkan.

PRESENTASI INDIVIDU
SECARA INDIVIDU, MAHASISWA DIBERIKAN KESEMPATAN UNTUK MELAKUKAN PRESENTASI
ATAS JAWABAN TUGAS DI ATAS

DUA ORANG UNTUK EXS. 5-1

DUA ORANG UNTUK EXS. 5-10

Mahasiswa yang berminat dipersilakan berkoordinasi dengan Korma.

SELAMAT BELAJAR
 Chapter 5 / Activity-Based Management 193

12. What is a kaizen standard? Describe the kaizen 15. What is the meaning of the activity volume vari-
and maintenance subcycles. ance? Explain how the unused capacity variance
13. Explain how benchmarking can be used to is useful to managers.
improve activity performance. 16. Describe the value of activity-based customer
14. In controlling non-value-added costs, explain costing.
how activity output measures (activity drivers) 17. Explain how activity-based costing can help a
can induce behavior that is either beneficial or firm identify its true low-cost suppliers.
harmful. How can value-added standards be used
to reduce the possibility of dysfunctional behavior?

Exercises
YoungerU, Inc., produces deluxe and regular home exercise equipment. Recently, 5-1
YoungerU has been losing market share with its regular equipment because of com-
petitors offering a product with the same quality and features but at a lower price. A ABC versus ABM
careful market study revealed that if YoungerU could reduce its regular model price LO1
by $10 per unit, it would regain its former share of the market. Management, how-
ever, is convinced that any price reduction must be accompanied by a cost reduction
of $10 so that per-unit profitability is not affected. Cameron Hepworth, controller
believes that poor overhead costing assignments may be distorting management’s
view of each product’s cost and therefore, the ability change selling prices. Cameron
has identified the following three overhead activities: machining, testing, and
rework. The three activities, their costs, and practical capacities are as follows:
Activity Cost Practical Capacity
Machining $1,800,000 150,000 machine hours
Testing 1,200,000 40,000 testing hours
Rework 600,000 20,000 rework hours
Other information regarding the two products is also provided. The consumption
patterns of the two products are as follows:
Regular Deluxe
Units 100,000 10,000
Machine hours 50,000 10,000
Testing hours 20,000 20,000
Rework hours 5,000 15,000
YoungerU assigns overhead costs to the two products using a plantwide rate based
on machine hours.

Required
1. Calculate the unit overhead cost of the regular exercise equipment using
machine hours to assign overhead costs. Now, repeat the calculation using ABC
to assign overhead costs. Did improving the accuracy of cost assignments solve
YoungerU’s competitive problem? What did it reveal?
2. Now, assume that in addition to improving the accuracy of cost assignments,
Cameron observes that defective supplier components is the root cause of both
the testing and rework activities. Suppose further that YoungerU has found a
new supplier that provides higher quality components that such that testing and
rework costs are reduced by 50 percent. Now, calculate the cost of each product
(assuming that testing and rework time are also reduced by 50 percent) using
ABC. The relative consumption patterns also remain the same. Comment on the
difference between ABC and ABM.
198 Pa r t 2 / A c t i v i t y - B a s e d A c c o u n t i n g

scanned with an electronic wand initiating payment for the goods. EDI involves no
paper, no purchase orders, no receiving orders, and no invoices.

Required

Discuss the potential effects of this solution on Whitley’s bill-paying process. Is this
process innovation or process improvement? Explain.

5-10 Six independent situations follow.

Calculation of A. A manual insertion process takes 30 minutes and eight pounds of material to
Value- and Non- produce a product. Automating the insertion process requires 15 minutes of
Value-Added Costs; machine time and 7.5 pounds of material. The cost per labor hour is $12, the
Unused Capacity cost per machine hour is $8, and the cost per pound of materials is $10.
LO2, LO3 B. With its original design, a gear requires eight hours of setup time. By redesigning
the gear so that the number of different grooves needed is reduced by 50 percent,
the setup time is reduced by 75 percent. The cost per setup hour is $50.
E XCEL C. A product currently requires six moves. By redesigning the manufacturing layout,
the number of moves can be reduced from six to zero. The cost per move is $20.
D. Inspection time for a plant is 16,000 hours per year. The cost of inspection con-
sists of salaries of eight inspectors, totaling $320,000. Inspection also uses sup-
plies costing $5 per inspection hour. The company eliminated most defective
components by eliminating low-quality suppliers. The number of production
errors was reduced dramatically by installing a system of statistical process con-
trol. Further quality improvements were realized by redesigning the products,
making them easier to manufacture. The net effect was to achieve a close to zero
defect state and eliminate the need for any inspection activity.
E. Each unit of a product requires six components. The average number of compo-
nents is 6.5 due to component failure, requiring rework and extra components.
By developing relations with the right suppliers and increasing the quality of the
purchased component, the average number of components can be reduced to six
components per unit. The cost per component is $500.
F. A plant produces 100 different electronic products. Each product requires an
average of eight components that are purchased externally. The components are
different for each part. By redesigning the products, it is possible to produce the
100 products so that they all have four components in common. This will reduce
the demand for purchasing, receiving, and paying bills. Estimated savings from
the reduced demand are $900,000 per year.

Required

Provide the following information for each of the six preceding situations.
1. An estimate of the non-value-added cost caused by each activity.
2. The root cause(s) of the activity cost (such as plant layout, process design, and
product design).
3. The cost reduction measure: activity elimination, activity reduction, activity shar-
ing, or activity selection.

5-11 Snow Technology produces transmissions for snowmobiles. Because of competitive

pressures, the company was making an effort to reduce costs. As part of this effort,
Calculation of management implemented an activity-based management system and began focus-
Value-Added and ing its attention on processes and activities. Purchasing was among the processes
Non-Value-Added (activities) that were carefully studied. The study revealed that the number of purchase
Costs; Activity orders was a good driver for purchasing costs. During the last year, the company
Volume and Unused
Capacity Variances
LO3