Activity Based Costing

--CASE STUDYACCOUNTINGS show uph Carolina Energy and Gas CompanyThis company is involved in the fade of gas for homes , offices industries and other(a) institutionsThe product chosen is home heating coiffure gas . This gas involves various activities like pickaxe those with returnable containers , oversight ( recapitulation ) and tape drive . The cost drivers to apportioned to this activities place atomic hail 18 canteen expenses , repairs maintenance and study place . I waste simulated these costs to be cl ,000 , 250 ,000 and ergocalciferol ,000 for canteen expenses , repairs maintenance and rent rates respectively . This apportionment provide be done base on number of employees , hold up value of assets for to each one department floor service sports stadium for filling those with returnable containers , supervi sion (inspection and transportation consecutively . The other assumption is that the number of employees for each activity are two hundred , 5 and 15 while floor stadium is 50m3 ,5m3 and 15m3 for filling those with returnable containers supervision (inspection ) and transportation .

The book values of assets is assumed to be 1 ,200 ,000 , 80 ,000 and 920 ,000 filling those with returnable containers , supervision (inspection ) and transportation respectivelyCost Amount Basis of apportioning filling inspection transportationCanteen expenses cl ,000 No . of employees 200 x 150 ,000220 136 ,364 5 x 150 ,000220 3 ,409 15 x 150 ,000220 10 ,227Repairs and maintenance 250 ,000 Book value of asse ts `000 1 ,200 x 250 ,0002 ,200 136 ,364 80 ! x 250 ,0002200 90 ,909 920 x 250 ,0002200 104 ,545Rent and rates d ,000 Floor area 50 x 500 ,00070 357 ,142 5 x 500 ,00070 35 ,71415 x 500 ,00070 107 ,142 From the results braggart(a) costs is associated with filling which is 629 ,870 out of 900 ,000 . This means it is the most fundamental activity that needs to be monitored by the managementREFERENCESDrury C (2000 perplexity and cost Accounting ,business kettle of fish Thomson LearningWald J (2000 ) Biggs s Cost account statement The English linguistic process Book Society and MacDonald and Evans Ltd London Plymouth...If you postulate to get a full essay, order it on our website: OrderEssay.net

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