二、Total OH = $80,000, OH is allocated base on DLH.
| Sales in unit | DLH | Direct Cost/unit-$ | Selling price/unit-$ | |
| M-11 | 1300 | 650 | 60 | 90 |
| R-24 | 1500 | 150 | 30 | 60 |
ABC
| Num. of setups | Num. of components | |
| M-11 | 3 | 14,000 |
| R-24 | 7 | 33,000 |
| Cost of activities | $20,000 | $50,000 |
1.Unit GM under traditional costing method
80000*650/(650+150)=65000 65000/1300=50 50+60=110 90-110=-20
80000*150/(650+150)=15000 15000/1500=10 10+30=40 60-40=20
2.Unit GM under ABC method
20000*3/(3+7)=6000 50000*14000/(14000+33000)...........
3advantage. & limitation of ABC
答：advantage:
1)it is more accurate and useful in pricing and strategic decisions.
2)It helps activity based management(more accurate allocating of indirect cost)
3)It is good for better control(*uation) and more efficient operations
4)it is useful in identifying non-value adding activities.
5)It is more suitable for very diverse production
Disadvantages:
1.not everything can be allocated strictly on a cost driver basis
2.It needs to maintain a separate accounting system
3.It may not confirm with GAAP
4.It is time consuming
5.It is expensive
高頓網(wǎng)校特別提醒：已經(jīng)報(bào)名2014年CMA考試的考生可按照復(fù)習(xí)計(jì)劃有效進(jìn)行！另外，高頓網(wǎng)校2014年CMA考試輔導(dǎo)高清課程已經(jīng)開(kāi)通，通過(guò)針對(duì)性地講解、訓(xùn)練、答疑，對(duì)學(xué)習(xí)過(guò)程進(jìn)行全程跟蹤、分析、指導(dǎo)，可以幫助考生全面提升備考效果。
報(bào)考指南： 2014年CMA考試報(bào)考指南
考前沖刺：CMA考試試題 考試輔導(dǎo)
