ACTG 1P11 Lecture Notes - Activity-Based Costing, Cost Driver, Gestapo
21 Apr 2014
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Ma chapter 4: abc: abc defined, activity-based costing (abc) is a process of allocating overhead costs to products using a number of allocation bases, rather than a single base, such as direct labour hours. Departmental allocation base quantity: overhead from each department is allocated to each job/product that uses that department, allocated oh = sum of [actual use of departmental oh base x. Department oh rate: designing an activity- based costing (abc) system, steps involved in abc a. Identify major activities: group costs of activities into cost pools c. Activity application rate = total estimated cost of activity pool. Total estimated usage of activity pool: allocate costs to cost objects such as products, jobs or departments using the activity rate and the volume of activity measure consumed by that cost object by. Activity overhead = activity application * activity usage by the.
