Recognition of Idle Resources in Time-Driven Activity-Based ...

JAMAR Vol. 7 · Number 2 · 2009Tables 9-14. As shown in Table 14, not allcommitted resource costs are allocated to theproduct lines. The difference between aresource cost and the total resource costallocated to the three product lines is the costof idle resources.Table 9: Allocation of Wages and Salaries Cost to Product Lines – TDABC-Based Costing ModelProduct Line Activity Resource-Activity Driver Unit of Activity Cost AllocatedStandard Administration $8,500.00 1 $8,500.00Assembly $18.00 2,200 $39,600.00Quality control $5.00 88 $440.00Deluxe Administration $8,500.00 1 $8,500.00Assembly $22.00 1,000 $22,000.00Quality control $5.00 100 $500.00Premium Administration $8,500.00 1 $8,500.00Assembly $30.00 300 $9,000.00Quality control $10.00 60 $600.00Total $97,640.00Table 10: Allocation of Depreciation Cost to Product Lines – TDABC-Based Costing ModelProduct Line Activity Resource-Activity Driver Unit of Activity Cost AllocatedStandard Assembly $37.50 2,200 $82,500.00Deluxe Assembly $45.83 1,000 $45,833.33Premium Assembly $62.50 300 $18,750.00Total $147,083.33Table 11: Allocation of Energy Cost to Product Lines – TDABC-Based Costing ModelProduct Line Activity Resource-Activity Driver Unit of Activity Cost AllocatedStandard Assembly $5.00 2,200 $11,000.00Deluxe Assembly $6.11 1,000 $6,111.11Premium Assembly $8.33 300 $2,500.00Total $19,611.11Table 12: Allocation of Factory Supplies Cost to Product Lines – TDABC-Based Costing ModelProduct Line Activity Resource-Activity Driver Unit of Activity Cost AllocatedStandard Assembly $1.80 2,200 $3,960.00Quality control $0.50 88 $44.00Deluxe Assembly $2.20 1,000 $2,200.00Quality control $0.50 100 $50.00Premium Assembly $3.00 300 $900.00Quality control $1.00 60 $60.00Total $7,214.00Table 13: Total Costs Allocated to Product Lines – TDABC-Based Costing ModelStandard Deluxe PremiumAdministration $8,500.00 $8,500.00 $8,500.00Assembly $137,060.00 $76,144.44 $31,150.00Quality Control $484.00 $550.00 $660.00Total $146,044.00 $85,194.44 $40,310.00Table 14: Summary of Resource Costs Allocation – TDABC-Based Costing ModelResource Committed Cost Allocated Cost Cost of Idle ResourceWages and Salaries $100,000.00 $97,640.00 $2,360.00Depreciation $150,000.00 $147,083.33 $2,916.67Energy $20,000.00 $19,611.11 $388.89Factory Supplies $7,500.00 $7,214.00 $286.0049