Activity Based Costing:

The activity based costing is done as follows.The activities are accounted in indirect costs

Counter-Boys salary
Rent
Electricity
Misc. Expenses

Product Line

50 g

Total
(i)

100 g

per Unit
=
(i)/4687

Cost Description/Unit
Direct costs
Purchase price @Rs.12/kg
Container cost
Total direct cost/Unit

Total
(i)

250 g

per
Unit
=
(i)/3130

0.6
0.075
0.675

Total
(i)

per Unit
=
(i)/1640

500 g
per
Unit
Total
=
(i)
(i)/1000

3
0.1
3.1

6
0.12
6.12

1.2
0.08
1.28

1000 g

Total
(i)

per
Unit
=
(i)/543

12
0.16
12.16

Indirect costs
Counter-boy's salary (Based on
No.of pieces)
Rent of Rs.154 (Based on
weight)
Electricty of Rs.440(Based on
weight)
Misc. expenses of Rs.308(Based
on weight)
Total indirect cost/Unit
Total cost
110% cost
Cost (nearest 10p)

262.472

0.056

175.28

0.056

91.84

0.056

56

0.056

30.408

0.056

18.018

0.00384425

24.101

0.0077

31.57

0.01925

38.5

0.0385

41.811

0.077

51.48

0.010983572

68.86

0.022

90.2

0.055

110

0.11

119.46

0.22

36.036
368.006

0.0076885
0.078516322

48.202
316.443

0.0154
0.1011

63.14
276.75

0.0385
0.16875

77
281.5

0.077
0.2815

83.622
275.301

0.154
0.507

0.753516322
0.828867954
0.82

Actual Sales Price per unit

0.80

Contribution/unit

0.02

1.3811
1.51921
1.5

3.26875
3.595625
3.6

6.4015
7.04165
7

12.667
13.9337
13.9

1.50

3.60

7.10

14.10

0.10

0.20