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    Activity Based Costing Formula Excel Template

    Uploaded by

    cic.controlescolar

    Copyright:

    © All Rights Reserved
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    Activity Based Costing Formula Excel Template

    Uploaded by

    cic.controlescolar
    56 views4 pages

    Copyright

    © © All Rights Reserved

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    XLSX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    56 views4 pages

    Activity Based Costing Formula Excel Template

    Uploaded by

    cic.controlescolar

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Activity Based Costing Formula Excel Template

    Prepared by Dheeraj Vaidya, CFA, FRM


    [email protected]

    visit - www.wallstreetmojo.com
    BAC ltd is considering shifting from traditional costing method to ABC based costing method and it has got
    the following details. Using ABC costing formula, find out the new overhead rates for the company.

    Activity Budgeted Cost Cost Driver Cost


    Machine Set-up 200000 No of Machine Setups 340
    Inspection 140000 Inspection Hours 7,500.00

    Machine Setup Cost 588.24


    Inspection Cost 18.67
    Following details pertains to different activities and their costs for Gamma Ltd. You are required to calculate
    overhead rate for each activity.

    Estimated Expected Activity


    Activity Cost Pool Cost Driver
    Overhead
    (A) (B) (C)= (A)/(B)
    Standard Speciality Total
    Number of Purchase 82 118 200
    Purchasing 120,000 600.00
    Orders
    Production Steps 202,500.00 Number of Setups 50 200 250 810.00
    Inspection 160000 Inspection Hours 300 500 800 200.00
    Assembling 80,000.00 Assembly Hours 800 800 1600 50.00
    Machine 5000 5000 10000
    300000 Machine Hours 30.00
    Maintenance

    Total 862500.00
    Mamata lnc. a manufacturing company of drugs is considering switching from their traditional
    method of costing to newly implemented system by their production head which is activity-based
    costing so that the two-products Z serum and W serum can be sold at their proper cost and make
    them price competitive in the market.

    Activity Cost Estimated Cost


    Pool Overhead Driver Expected Activity
    (A) Z serum W serum Total (B) (C)= (A)/(B)
    Purchasing 60,000.00 Number of
    Purchase 410 590 1000 60.00
    Orders
    Material 75,000.00 Number of 50.00
    Handling Purchase 580 920 1500
    Receipts
    Production 101250 Number of 81.00
    Steps Setups 250 1000 1250
    Inspection 80,000.00 Inspection 20.00
    Hours 1500 2500 4000
    Assembling 40,000.00 Assembly 4000 4000 8000 5.00
    Machine Hours 3.75
    Machine
    Maintenance 150000 20000 20000 40000
    Hours
    Total 506,250.00
    Overhea
    W serum Z serum W serum Total (a*c)
    Z serum (a) d Rate
    (b) (a*c) (b*c) + (b*c)
    from (c)
    Purchasing 410 590 60 24,600.00 35,400.00 60,000.00
    Material
    580 920 50 29,000.00 46,000.00 75,000.00
    Handling
    Production
    250 1000 81 20,250.00 81,000.00 101,250.00
    Steps
    Inspection 1500 2500 20 30,000.00 50,000.00 80,000.00
    Assembling 4000 4000 5 20,000.00 20,000.00 40,000.00
    Machine
    20000 20000 3.75 75,000.00 75,000.00 150,000.00
    Maintenance
    Total 198,850.00 307400.00 506250.00

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