Beruflich Dokumente
Kultur Dokumente
Industrial Costing
SS 2016/2017
1
Chapter 5
2
Structure of the cost allocation sheet
with the direct method
3
Example: Internal cost allocation with direct method
R E M P1 P2 Admin. Distrib.
Reparation
1.600 h 50 h 200 h 850 h 450 h 30h 20 h
(hours)
Electricity 600.000 35.000 20.000 350.000 150.000 25.000 20.000
(kWh) kWh kWh kWh kWh kWh kWh kWh
4
Determination of the cost rates for internal cost allocation
The direct method doesnt take the provided services from the service cost center
reparation (50 hours) for the service cost center electricity and the provided services from
electricity (35.000 kWh) to reparation into account. Due to that fact the provided services
have to be subtracted from the primary overhead cost of each service cost center.
64.680,
Cost rate reparation : cR = = 41,73 h
1.600 h 50 h
53.937,
Cost rate electricity: cR = = 0,095 kWh
600.000 kWh 35.000 kWh
In the internal cost allocation the primary overhead cost of the two service cost center
reparation (R) and electricity (S), which are the part of the provided services for the main
cost center, can be shifted to the main cost center with the two cos rates. After the
internal cost allocation the service cost center can be described as empty and dont
contain any overhead cost.
5
Distribution of the service cost center
with the direct method
Service cost center Main cost center
R E M P1 P2 Admin. Distrib.
Primary
overhead 2.182.000,- 64.680,- 53.937,- 101.372,- 827.998,- 426.310,- 455.460,- 252.243,-
costs
Assemble -64.680,- 8.346,- 35.470,- 18.778,- 1.252,- 834,-
6
Structure of cost allocation sheet
with the step-ladder method
7
Example: Internal cost allocation with the step-ladder method
Distribution of the service cost center costs with the step-ladder method
Service cost
Sum Main cost center
center
R E M P1 P2 Admin. Distrib.
Reparation
1.600 h 50 h 200 h 850 h 450 h 30h 20 h
(hours)
8
Determination of the cost rates for internal cost allocation
64.680,
Cost rate reparation : cR = = 40,43 h
1.600 h
The numerator of the service cost center electricity changes. The secondary costs of the
service cost center reparation with the amount of 2.021,- (50 h x 40, 43 /h) are charged in
the service cost center electricity. The 35.000 kWh which are provided by the service cost
center electricity for the service cost center reparation are not taken into account for the
denominator, due to the fact that upstream cost center are not considered. By allocating the
565.000 kWh with the main cost center the cost rate increases.
53.937, + 2.021,
Cost rate elecricity: cS = 600.000 kWh 35.000 kWh = 0,099 kWh
9
Distribution of the service cost center costs
with the step-ladder method
Service cost center Main cost center
R E M P1 P2 Admin. Distrib.
Primary
2.182. 000,- 64.680,- 53.937,- 101.372,- 827.998,- 426.310,- 455.460,- 252.243,-
overhead costs
Assemble - 64.680,- 2.021,- 8.085,- 34.361,- 18.191,- 1.21,-3 809,-
reparation
(50 h x (200 h x (850 h x (450 h x (30 h x (20 h x
40,43 /h) 40,43 /h) 40,43 /h) 40,43 /h) 40,43 /h) 40,43 /h)
Intermediate
53.937 ,- +
cut
2.021,- =
55.958,-
Assemble - 55.958,- 1.981,- 34.664,- 14.856,- 2.476,- 1.981,-
10
System of emitting and receiving cost center
C1 x 1.2 c1 C2
Cost center 1 Cost center 2
x 2.1 c2
x 3.1 c3 x 3.2 c3
x 1.3 c1 x 2.3 c2
Cost center 3
C3
11
System of equations
Input in EUR = Output in EUR
Primary costs of the considered cost center+ = Total capacity of the
secondary cost of the other cost center considered cost center
C1 + x 1,1 c1 + x 2,1 c2 + ... + x n,1 cn = x1 c1
C2 + x 1,2 c1 + x 2,2 c2 + ... + x n,2 cn = x2 c2
C3 + x 1,3 c1 + x 2,3 c2 + ... + x n,3 cn = x3 c3
. . . . .
. . . . .
Cn + x 1,n c1 + x 2,n c2 + ... + x n,n cn = xn cn
12
System of the emitting and receiving service cost center
13
1. Step: Setting up the equation
The service cost center reparation delivered and received something from the service cost
center electricity. Therefore it is necessary to set up an input- and an output- equation for
both. The input of the service cost center reparation is defined by the primary cost
(64.680,- ) and the secondary cost of the service cost center electricity. 35.000 KWh were
delivered to the reparation. The output of the reparation amounts 1.600 hours.
The primary cost of the service cost center electricity amounts 53.937,- an in
addition plus 50 hours of reparation, which were not converted to Euro. The output
is evaluated with 600.000 KWh.
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2. Step: Transforming the equation 1:
cR = 40,425 + 21,875 cE
15
Solution for the example:
Internal cost allocation with the equation method
Service cost center Main cost center
R E M P1 P2 Admin. Distrib.
Primary
overhead 2.182.000,- 64.680,- 53.937,- 101.372,- 827.998,- 426.310,- 455.460,- 252.243,-
costs
Intermediate
64.680,- +
cut
3.270,- =
67.950,-
Assemble -67.950 ,- 2.123,- 8.494,- 36.099,- 19.111,- 1.274,- 849,-
(50 h x (200 h x (850 h x (450 h x (30 h x (20 h x
Reparation
42,469 /h) 42,469 /h) 42,469 /h) 42,469 /h) 42,469 /h) 42,469 /h)
ntermediate
53.937,- +
cut
2.123,- =
56.060,-
Assemble 3.270,- -56.060,- 1.869,- 32.702,- 14.015,- 2.335,- 1.869 , -
(35.000 (20.000 (350.000 (20.000 (20.000 (20.000
electricity kWh kWh kWh kWh kWh kWh
X X X X X X
0,0934 0,0934 0,0934 0,0934 0,0934 0,0934
/kWh) /kWh) /kWh) /kWh) /kWh) /kWh)
Overhead
2.182.000,- 0,- 0,- 111.735,- 896.799,- 459.436,- 459.069,- 254.961,-
costs
16
The production costs of the production and the production
costs of the sales can be determined by the following way:
17
Internal cost allocation
18