Activity Based Costing Examples - Managerial Accounting video
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- เผยแพร่เมื่อ 6 ก.พ. 2025
- Activity Based Costing Example - Accounting video by TheAccountingDr is a tutorial video with examples on using an activity-based costing system: 1) calculate the allocation rate and 2) allocated costs (overhead/indirect costs) using the allocation rate. In addition, we calculate the indirect costs per unit of planned products as well as the product costs per unit of planned products (direct materials + direct labor + OH).
Managerial Accounting lecture notes: tiny.cc/nw1enw
Activity-Based Costing terminology review game: tiny.cc/mxgoow
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Activity-Based Costing Examples - Managerial Accounting video: • Activity Based Costing...
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Thanks for viewing my video on activity based costing examples. I am hoping to get more videos up soon and I will work on getting a video that addresses a second department and FIFO and weighted average method. In the meantime, please subscribe to my TH-cam channel to receive notifications of newly posted accounting videos. Also, visit my website at TheAccountingDr . com for additional accounting resources.
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Ok I have an exam tomorrow and you just saved my life. Peacefully. I
Mygosh!!! Thank God I found uuuu!!!! I just followed all the procedures in my handout provided by our school but it turned out the overhead cost and total of all cost per product didn't appear the same of overhead cost total. Thank youuu so muchhhhh!!!!!! 💓💓💓
Notice in the Cost Driver column, neither of the two activities are driven by DL hours. Therefore, it is not needed in determining any of the predetermined overhead rates used to calculate overhead allocated to either of the products.
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This video has really helped me in understanding Activity Based Costing. Thank you!!!!!!
you're a genius i understand it now, thank you so much
Thank you for this simple explanation with such a great example, you're a genius!
thank you very much for this. this made my it clear as day for me. i have a Asian professor and i have a lot of trouble understanding her.
Thanxs a lot..This really made my life easier in preparing for my exam
Most welcome 😊
I'v been learning a lot from u so thnx
Glad to hear it
Very clear and easy to understand thank you the video was really helpful
Man, really good video
Appreciate it!
Thanks for the clear and straight forward explanation.
Thank you thank you thank you!!!
You are so welcome!
im ready for my final ~ thanks!😃 u made my life easier ❤
A true genius indeed.
Excellent and comprehensive. These are the steps in my textbook:
1. Identify the major activities that pertain to the business
2. Accumulate overhead costs by activities
3. Identify the cost driver(s) that accurately measure(s) each activity
4. Assign overhead costs for each activity using cost driver rates
Is this the same steps you are doing but in a different order? And when it says "major activities", does that mean the "cost pools"? Or are they two completely different things? Thank you.
Major activities are the activities that products go through to become a finished good. These are the activities that you will calculate an allocation rate for to apply overhead to a product. A cost object is something you allocate those costs to (anything that accumulates costs can be a cost object - i.e. a job, product, service, etc).
Brian Routh TheAccountingDr
Thanks, I noted that you mentioned a "cost object" rather than a "cost pool" like I had originally asked, are they synonymous?
Very nice, hy didnt u touch the labour coat by the way?
This video helped me loads! thank you for making this
Very helpful examples!
This video helped me a great deal! Thank you so much!
This was REALLY helpful thank you
Very helpful examples! Thanks!
Very helpful. Thanks.
This is a great question. Notice in the Cost Driver column, neither of the two activities are driven by DL hours. Therefore, it is not needed in determine any of the predetermined overhead rates for determine overhead allocated to either one of the products.
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I have my priorities next month can you please do one more video....thanks a lot This was very very helpful
Thank you soo much sir! This really helped me a lot!
Helpful.. thanks.
what if there are labor mix like skilled and semi skilled worker. how would you find out skilled and semi skilled labor?
Thank you sir
this was extremely helpful!!! thanks so much
Super helpful, thanks!
Thank you very much
Heyy i wanna ask, at 12:48, about the direct material cost, arent you wrong, isnt the correct answer is 900 x 37 for product C because its a direct material cost per unit???
George, that's a great question. However, keep in mind that we are calculating the DM cost PER UNIT.
this is the good discussionon on ABC .Could u plz add some more examples of ABC system and cost of the production department to second department for FIFO n Weighted Average Method .
good video.thanks
Why dont we need that info about labor hours? Is it all abc methods in general?
Thanx a bunch!
Nicely done, good job :)
What about machine hours..is it part of OH or need to be calculated as Direct machine hours or something like that
Machine hours is not actually a cost and would not be included as part of OH costs. It would likely be used as a cost driver IF that is what is driving the OH costs of the company or division.
this is genius helpful thanks ..!!!!!
thanks so much
can plz upload step by step procedure to start a business & to fix a cost for each product plz
Thanks
whats the difference between standard costing and ABC. I understand how to do ABC now but not standard?
Exellent.
so good
thank u
thank u sir
Am I wrong ....total cost for product A is 37100+12000 which adds up to 49100 not 44100
Elizah, I apologize that it is difficult to see but, it's actually $32,100 + $12,000 = $44,100.