Activity-based costing Ridwan Adji Baskoro (B11.2012.02464) Zunrotun Anfa (B11.2012.02582) Ageng Fatmawati (B11.2012.02553) Annisa Rizki Amalia (B11.2012.02696) Novia Triningrum (B11.2012.02641) Eko Santoso (B11.2012.02700) Rio Angga (B11.2012.02656)

Topics Discussed Activity-Based Product Costing Homogeneous Pools of Activities Activity-Based Customer and Supplier Costing

1. Activity-Based Product Costing Activity based costing system first traces costs to activities and then to products. Sistem perhitungan biaya berdasarkan aktivitas, pertama menelusuri biaya pada aktivitas kemudian pada produk.

Identifying Activities AND Their attributes An activity is action taken or work performed by equipment or people for other people, identifying activities is usually accomplished by interviewing managers or representatives of functional work areas (departements). Suatu aktivitas merupakan tindakan yang diambil atau pekerjaan yang dilakukan dengan peralatan atau orang untuk orang lain, pengidentifikasian aktivitas biasanya dilakukan dengan mewawancarai para manajer atau para wakil dari area kerja fungsional (departemen).

Identifying Activities AND Their attributes Activity attributes are financial and non financial information items that describe individual activities. What attributes are used depends on the purpose. Atribut aktivitas adalah informasi keuangan dan non keuangan yang mendeskripsikan aktivitas individual. Atribut yang digunakan bergantung pada tujuannya.

ASSIGNING COSTS TO ACTIVITIES The costs of the resource is found in the general ledger, but how much is spent on each activity is not revealed. Thus, it becomes necessary to assign the resource cost to activies using direct and driver tracing. Biaya dari sumber daya didapatkan dari buku besar umum, tetapi seberapa besar biaya yang dihabiskan pada setiap aktivitas tidak dapat dilihat. Maka, biaya sumber daya pada aktivitas perlu dibebankan dengan menggunakan penelusuran langsung dan penggerak.

ASSIGNING ACTIVITY COSTS TO OTHER ACTIVITIES Activities are classified as primary and secondary. The costs of secondary activities are ultimately assigned to primary activities using activity drivers. The costs of primary activities are assigned to products, customers, and other cost objects. Aktivitas diklasifikasikan sebagai primer dan sekunder. Biaya aktivitas sekunder dibebankan pada aktivitas primer dengan menggunakan penggerak aktivitas. Biaya aktivitas primer dibebankan pada produk, pelanggan, dan objek biaya lainnya.

2. HOMOGENOUS POOLS OF ACTIVITIES Homogeneous sets of activites are collections of activitis that have the same activity level and activity driver classification. Aktivitas homogen adalah koleksi aktivitas yang memiliki tingkat aktivitas dan klasifikasi yang sama.

Detailed classication of activities Activities are classifed into one of the following four general activity categoris : unit level, batch level, product level, and facility level. Aktivitas dapat diklasifikasikan dalam empat kategori umum: tingkat unit,tingkat batch,tingkat produk,dan tingkat fasilitas.

Unit level aktivities are those performed each time a unit is produced Unit level aktivities are those performed each time a unit is produced. Batch level activities are those performed each time a batch of goods is produced Aktivitas tingkat unit adalah aktivitas yang dilakukan setiap kali tingkat unit di produksi. Aktivitas tingkat batch adalah aktivitas yang dilakukan setiap suatu batch produk di produksi.

Aktivitas tingkat produk adalah aktivitas yang dilakukan bila di perlukan untuk mendukung berbagai produk yang di produksi perusahaan. Aktivitas tingkat fasilitas adalah aktivitas yang menopang proses umum produksi suatu pabrik Product level activities are those performend as needed to support the various products produced by a company. Facility level activites are those that sustain a factory’s general manufacturing processed.

3. Activity-based customer and supplier costing In an activity-based costing system, product costing accuracy is improved by tracing activity costs to the products that consume the activities. Dalam sistem perhitungan biaya aktivitas, keakuratan perhitungan harga pokok produk diperbaiki dengan penelusuran biaya aktivitas pada produk yang memakai aktivitas.

Activity-based customer and supplier costing Activity based costing can also be used to accurately determine the costs of customers and suppliers. Knowing the costs of customers and suppliers can be vital information for improving a company’s profitability. Perhitungan biaya aktivitas juga dapat digunakan untuk menentukan keakuratan biaya pelanggan dan pemasok. Pengetahuan biaya pelanggan dan pemasok dapat menjadi informasi penting untuk memperbaiki profitabilitas suatu perusahaan.

ACTIVITY-BASED CUSTOMER COSTING Customers are thus cost objects of fundamental interest. Customer management can produce significant gains in profit. Para pelanggan adalah objek biaya yang cukup berpengaruh. Manajemen atas pelanggan dapat menghasilkan pendapatan signifikan dalam laba.

Knowing how much it cost to service different customers can be vital information for such purposes as pricing, determining customer mix, and improving provitability. Mengetahui besarnya biaya untuk melayani para pelanggan yang berbeda adalah informasi yang sangat penting untuk beberapa tujuan seperti penentuan harga, penentuan baruan pelanggan dan perbaikan profitabilitas.

STUDY CASE 1 (page 140, exercise 4-3) Flanders Associates produces carburetors for small engines and uses a normal costing system. The following date are available for 2006: Budgetted: Overhead $ 4,500,000 Machine hours 187,500 Direct labor hours 600,000 Actual: Unit produced 750,000 Overhead $ 4,466,250 Prime cost $ 6,750,000 Machine hours 188,000 Direct labor hours 580,000 Overhead is applied on the basis of direct labor hours.

Required What is the determined overhead rate? What is the applied overhead for 2006? Was overhead overapplied or underapplied, and buy how much? What is the unit cost for the year?

Answer: 1. a)Fabrication rate = $ 4,500,000 / 187.000 = $ 24,04 per Mhr b)Assembly rate= 4.500.000/600.000 =$ 7,5 per DHL 2. Applied overhead = (24,04 X 188.000)+(7,5X 580.000) = $ 8.869.520 3. Overhead variance = $ 4,466,250 - $ 8.869.520 = $ -4.403.270 Overapplied

Unit cost (total cost/unit) $ 41,49 Prime cost 6,750,000 Overhead cost : (24,04x188.000)+(7,5x187,500)= 5.925.770 (24,04x580.000)+(7,5x600.000)= 18.443.200 Total Manufacturing cost 31.118.970 Unit produced ÷ 750.000 Unit cost (total cost/unit) $ 41,49

Study case 2 (page 144, exercise 4-11) Rollier Manufacturing produce two types of battery-operated toy soldier: infantry and special forces. The soldier are produced using one continuous process. Four activities have been indentified: machining, setups, receiving, and packing. Resource driver have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Hours Setups Receiving Orders Packing Orders Infantry 30,000 150 200 1,600 Special Forces 20,000 100 400 800 Costs $ 80,000 $ 24,000 $ 18,000 $ 30,000

Required Classify the overhead activities as unit-level, batch-level, product-level, or facility level. Create homogeneous cost pools. Identify the activities that belong to each pool. Identify the activity driver for each pool, and compute the pool rate. Assign the overhead costs to each product using the pool rates computed in requirement 3.

Answer: 1. Unit level = Machine hour Bacth = Setups, receiving orders and packing orders 2. Cost Pool Unit level Machine hours $ 80,000 Unit bacth Receiving orders $ 18,000 Setups $ 24,000 Packing orders $ 30,000 Total $ 72,000

Bacth Pool Unit Bacth Unit Level Infantry Special Forces Machine 30,000 20,000 Unit Bacth Infantry Special Forces Receiving Orders 200 400 Setups 150 100 Packing Order 18,000 30,000

3. Unit level Infantry $ 30,000 Special 20,000 Total 50,000 Machine ÷ 80,000 Pool rate 0.625 Unit Bacth Setups Receiving Orders Packing Orders Infantry 150 200 1600 Special Forces 100 400 800 Total 250 600 2400 Pool rate ÷ 24,000 ÷ 18,000 ÷ 30,000 0.01 0.03 0.08

4. Overhead Cost Unit level = 0 4. Overhead Cost Unit level = 0.625 × 80,000 = $ 50,000 Unit bacth Setups = 0.01 × 24,000 = 240 Receiving orders = 0.03 × 18,000 = 540 Packing orders = 0.08 × 30,000 = 2400

Thank’s for your attention