Beruflich Dokumente
Kultur Dokumente
Activity-Based
Costing
Edited by
Nazim Uddin
Lecturer, Northern University
Bangladesh
Learning Objective 1
Identify three
methods used for
allocating factory
overhead costs to
products.
Learning Objective 2
Use a single
plantwide factory
overhead rate for
product costing.
Learning Objective 3
Use multiple
production
department factory
overhead rates for
product costing.
Learning Objective 4
Learning Objective 5
Use activity-based
costing to allocate
selling and
administrative
expenses to products.
Budgeted Warranty
Claim Expenses
Estimated
Warranty Claims
Warranty Claim
Activity Rate
Warranty Claim
Activity Rate
$150,000
100 claims
Learning Objective 6
Activity-Based Costing in
Service Businesses
Hopewell
Hopewell Hospital
Hospital
Hopewell Hospital uses an activity-based costing
system to determine how hospital overhead is
allocated to patients.
Activity-Based Costing in
Service Businesses
Hopewell
Hopewell Hospital
Hospital
The budgeted costs for radiological testing are
$96,000, based on total estimated activity-base
usage of 3,000 images.
Activity Rate =
Radiological
Testing Activity =
Rate
Activity-Based Costing in
Service Businesses
Hopewell
Hopewell Hospital
Hospital
6
Activity-Based
Costing in
Service Businesses
Hopewell
Hopewell Hospital
Hospital
Questions