{"id":344,"date":"2011-09-02T18:31:19","date_gmt":"2011-09-02T11:31:19","guid":{"rendered":"https:\/\/mbabullshit.com\/blog\/?p=344"},"modified":"2017-09-14T12:14:36","modified_gmt":"2017-09-14T05:14:36","slug":"activity-based-costing","status":"publish","type":"post","link":"https:\/\/mbabull.com\/blog\/2011\/09\/02\/activity-based-costing\/","title":{"rendered":"Activity Based Costing in 6 Easy Steps, ABC Costing"},"content":{"rendered":"<h2>3-Minute Overview<\/h2>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/ivlI0HvUPQo\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Part 1 (Details of Video&#8217;s Example are at Bottom of This Page)<\/h2>\n<p><iframe loading=\"lazy\" src=\"http:\/\/www.youtube.com\/embed\/PcjxRe4EsuY\" width=\"560\" height=\"315\" frameborder=\"0\"><\/iframe><\/p>\n<h2>Part 2<\/h2>\n<p><iframe loading=\"lazy\" src=\"http:\/\/www.youtube.com\/embed\/xLb0onIVzmM\" width=\"560\" height=\"315\" frameborder=\"0\"><\/iframe><\/p>\n<h2>Activity Based Costing Exam Training &#8211; Premium Video (Free Preview)<\/h2>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/l6WcvfkkKaE\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>To Watch FULL Premium videos <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/mbabullshit.com\/blog\/video-plan-170626\/\" target=\"_blank\">Click Here<\/a><\/span><\/h2>\n<p>Detailed Problem in Video Example Above:<\/p>\n<p><span style=\"font-size: 13px; line-height: 19px;\">ABC Mobile Phone Company makes mobile phones.\u00a0 How much is the overhead cost of <\/span><span style=\"text-decoration: underline;\">each<\/span><span style=\"font-size: 13px; line-height: 19px;\"> phone of <\/span><span style=\"text-decoration: underline;\">each<\/span><span style=\"font-size: 13px; line-height: 19px;\"> Phone Model (both Model-A and Model-B)?<\/span><br \/>\nEx. Mobile Phone Company, 1 Year of Data<br \/>\n*<span style=\"text-decoration: underline;\">1 year is only an example<\/span>.\u00a0 It can be a different time period in other problems.\u00a0 But let\u2019s just use 1 year to keep it simple for this easy example.<span style=\"text-decoration: underline;\"><br \/>\nPhones Manufactured in 1 year:<\/span><br \/>\n1. PDA-phones manufactured in 1 year: 3,000 phones<br \/>\n2. Simple-phones manufactured in 1 year: 7,000 phones<br \/>\nTotal Phones Manufactured in 1 year (PDA Phones + Simple Phones):\u00a0 10,000 phones <span style=\"text-decoration: underline;\"><br \/>\nOverhead Cost in 1 year:<\/span><br \/>\n1.Machine Maintenance Costs: $400,000<br \/>\n2. Quality Control Costs: $600,000<br \/>\nTotal Overhead of Firm (Machine Maintenance + Quality Control):\u00a0 $1,000,000<br \/>\n*To keep it simple, we have only 2 types of overhead in this example.\u00a0 In other problems, there can be more types of overhead, such as rent, electricity, and more\u2026<span style=\"text-decoration: underline;\"><\/span><\/p>\n<p>Quantity of EACH Overhead Type:<\/p>\n<p>Number of Machine Hours Used:\u00a0 10,000 hours<\/p>\n<p>* The number of \u201cmachine hours\u201d is the way we will count or measure how much machine maintenance we did.\u00a0 We need to know this because machine maintenance is part of the overhead.<\/p>\n<p>Quality Inspections:\u00a0 1,000 inspections<\/p>\n<p>* The number of \u201cquality inspections\u201d is the way we will count or measure how much quality control we did.\u00a0 We need to know this because quality control is part of the overhead.<\/p>\n<p><span style=\"text-decoration: underline;\">Quantity of EACH type of Overhead Used by EACH type of Phone:<\/span><br \/>\nPDA-Phones: 5,500 Machine Hours and 650 Quality Inspections<br \/>\nSimple-Phones: 4,500 Machine Hours and 350 Quality Inspections<\/p>\n","protected":false},"excerpt":{"rendered":"<p>3-Minute Overview Part 1 (Details of Video&#8217;s Example are at Bottom of This Page) Part 2 Activity Based Costing Exam Training &#8211; Premium Video (Free Preview) To Watch FULL Premium videos Click Here Detailed Problem in Video Example Above: ABC Mobile Phone Company makes mobile phones.\u00a0 How much is the overhead cost of each phone [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[161,164,165,35,162,163],"class_list":["post-344","post","type-post","status-publish","format-standard","hentry","category-free-video-tutorials","tag-abc-costing","tag-abc-costing-example","tag-abc-costing-explained","tag-activity-based-costing","tag-activity-based-costing-example","tag-activity-based-costing-explained"],"_links":{"self":[{"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/posts\/344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/comments?post=344"}],"version-history":[{"count":16,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/posts\/344\/revisions"}],"predecessor-version":[{"id":5419,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/posts\/344\/revisions\/5419"}],"wp:attachment":[{"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/media?parent=344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/categories?post=344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mbabull.com\/blog\/wp-json\/wp\/v2\/tags?post=344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}