【正文】 s designing the product itself and planning how it will be made. FacilitySustaining Costs... – are resources sacrificed on activities that cannot be traced to individual products or services but which support the anization as a whole. ? General administration –rent –building security –CEO?s salary Different forms of ABC ? Simple approach includes manufacturing overhead only ? ABC system for all indirect costs includes manufacturing and nonmanufacturing costs ? Comprehensive system includes all productrelated costs, except direct material The Mechanics of ABC Classic Brass Ltd makes finely machined brass fittings for a variety of applications. For this pany, the ultimate cost objects are: ?Products, ?Customer orders, and ?Customers. One overhead cost shipping can be traced directly to customer orders. The pany’s activity cost pools are shown on the next slide. Step 1: Identify and Define Activities and Activity Cost Pools At Classic Brass, the ABC team, selected the following activity cost pools and activity measures: A c t i v i t y C os t P oo l A c t i v i t y M e a s ur eC us t om e r or de r s N um be r of c us t om e r or de r sP r od uc t de s i gn N o. of pr od uc t s de s i gn e dO r de r s i z e M a c hi ne ho ur sC us t om e r r e l a t i on s N um be r of a c t i v e c us t om e r sO t he r ( no t a s s i gn e d t o pr od uc t s )A c t i v i t y C o s t P o o l s a t C l a s s i c B r a s sStep 1: Identify and Define Activities and Activity Cost Pools ? Customer Orders assigned all costs of resources that are consumed by taking and processing customer orders. ? Product Designs assigned all costs of resources consumed by designing products. ? Order Size assigned all costs of resources consumed as a consequence of the number of units produced. ? Customer Relations – assigned all costs associated with maintaining relations with customers. ? Other – assigned all overhead costs that are not associated with the other cost pools. P r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 5 0 0 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o n 3 0 0 , 0 0 0 F a c t o r y u t i l i t i e s 1 2 0 , 0 0 0 F a c t o r y b u i l d i n g l e a s e 8 0 , 0 0 0 1 , 0 0 0 , 0 0 0$ S h i p p i n g c o s t s t r a c e d t o c u s t o m e r o r d e r s 4 0 , 0 0 0 G e n e r a l A d m i n i s t r a t i v e D e p a r t m e n tA d m i n i s t r a t i v e w a g e s a n d s a l a r i e s 4 0 0 , 0 0 0 O f f i c e e q u i p m e n t d e p r e c i a t i o n 5 0 , 0 0 0 A d m i n i s t r a t i v e b u i l d i n g l e a s e 6 0 , 0 0 0 5 1 0 , 0 0 0 M a r k e t i n g D e p a r t m e n tM a r k e t i n g w a g e s a n d s a l a r i e s 2 5 0 , 0 0 0 S e l l i n g e x p e n s e s 5 0 , 0 0 0 3 0 0 , 0 0 0 T o t a l o v e r h e a d c o s t s 1 , 8 5 0 , 0 0 0$ O v e r h e a d C o s t s a t C l a s s i c B r a s s( M a n u f a c t u r i n g a n d N o n M a n u f a c t u r i n g )Step 2: Whenever Possible, Directly Trace Overhead Costs to Activities and Cost Objects Step 3: Assign Costs to Activity Cost Pools C us t om e r O r de r s P r od uc t D e s i gn O r de r S i z e C us t om e r R e l a t i on s O t he r To t a lP r od uc t i on D e pa r t m e ntI nd i r e c t f a c t ory w a ge s 25% 40% 20% 10% 5% 100%Fa c t ory e qu i pm e nt de pre c i a t i on 20% 0% 60% 0% 20% 100%Fa c t ory ut i l i t i e s 0% 10% 50% 0% 40% 100%Fa c t ory bu i l di ng l e a s e 0% 0% 0% 0% 100% 100%S hi pp i ng c os t s * *G e ne r a l A dm i ni s t r a t i v e D e pa r t m e ntA dm i ni s t r a t i v e w a ge s a nd s a l a r i e s 15% 5% 10% 30% 40% 100%O f f i c e e qu i pm e nt de pre c i a t i on 30% 0% 0% 25% 45% 100%A dm i ni s t r a t i v e bu i l di ng l e a s e 0% 0% 0% 0% 100% 100%M a r k e t i ng D e pa r t m e ntM a r k e t i ng w a ge s a nd s a l a r i e s 20% 10% 0% 60% 10% 100%S e l l i ng e x pe ns e s 10% 0% 0% 70% 20% 100%A c t i v i t y C os t P oo l sAt Classic Brass the following distribution of resource consumption across activity cost pools is determined. **Not included because they are directly traced to customer orders. C u s t o m e r O r d e r s P r o d u c t D e s i g n O r d e r S i z e C u s t o m e r R e l a t i o n s O t h e r T o t a lP r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 1 2 5 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o nF a c t o r y u t i l i t i e sF a c t o r y b u i l d i n g l e a s eG e n e r a l A d m i n i s t r a t i v e D e p a r t m e n tA d m i n i s t r a t i v e w a g e s a n d s a l a r i e sO f f i c e e q u i p m e n t d e p r e c i a t i o nA d m i n i s t r a t i v e b u i l d i n g l e a s eM a r k e t i n g D e p a r t m e n tM a r k e t i n g w a g e s a n d s a l a r i e sS e l l i n g e x p e n s e sT o t a lA c t i v i t y C o s t P o o l sIndirect factory wages $500,000 Percent consumed by customer orders 25% $125,000 Step 3: Assign Costs to Activity Cost Pools P r o d u c t i o n D e p a r t m e n tI n d i r e c t f a c t o r y w a g e s 5 0 0 , 0 0 0$ F a c t o r y e q u i p m e n t d e p r e c i a t i o n 3 0 0 , 0 0 0 F a c t o r y u t i l i t i e s 1 2 0 , 0 0 0 F a c t o r y b u i l d i n g l e a s e 8 0 , 0 0 0 1 , 0 0 0 , 0 0 0$ S h i p p i n g c o s t s t r a c e d t o c u s t o m e r o r d e r s 4 0 , 0 0 0 G e n e r a l A d m i n i s t r a t i v