COST SHEET: DIRECT COSTING

Per Unit Cost

Components Descripition Per Unit Consumption
Rate
Fabric
Main Fabric plain weave (polycotton) 2.5 mts Rs. 230/mt
Pocket interlining poplin 0.35mt Rs. 35/mt
waistband fusing fusing material 0.5 mt Rs.25/mt
Trims
Button plastic button 1 Rs.0.90
brand label 1 1 Rs. 0.80
Size label back, below waistband 1 Rs. 0.20
Care label left front, below waistband 1 Rs. 0.30
Brand label 2 back side, right, leather 1 Rs.0.60
Zipper metal sliding zipper 1 Rs 8
polybag polythene 1 Rs.1
Export carton cardboard 1 per 20 units Rs.4
Price tag paper 1 Rs0.4.
Thread dark blue , 3 ply 2 bobbibs Rs. 3.5
Direct Labor
CMT
TOTAL DIRECT COST
Variable Overheads
Margin at 20% of total direct cost
TOTAL COST

profit= 30% of total raw material cost= 30% of (6278300-86800) = 1857450

price = totall cost + profit =7533960 + 1857450 = 9391410
price per unit = 9391410/10000 = Rs.939.14
 Per Unit Cost Cost for 10,000 units
Price/ unit (in Rs)

Rs. 575 5750000

Rs. 12.25 122500
Rs. 12.50 125000

Rs. 0.90 9000

Rs. 0.80 8000
Rs. 0.20 2000
Rs. 0.30 3000
Rs.0.60 6000
Rs.8.00 80000
Rs.1 10000
Rs.0.2 2000
Rs0.40 4000
Rs. 7.00 70000 polybag polythene

Rs.8.68 86800
6278300

t 1255660
7533960
 COST SHEET: ABSORPTION COSTING

Per Unit Cost

Components Descripition Per Unit Consumption
Rate
Fabric
Main Fabric plain weave (polycotton) 2.5 mts Rs. 230/mt
Pocket interlining poplin 0.35mt Rs. 35/mt
waistband fusing fusing material 0.5 mt Rs.25/mt
Trims
Button plastic button 1 Rs.0.90
brand label 1 1 Rs. 0.80
Size label back, below waistband 1 Rs. 0.20
Care label left front, below waistband 1 Rs. 0.30
Brand label 2 back side, right, leather 1 Rs.0.60
Zipper metal sliding zipper 1 Rs 8
polybag polythene 1 Rs.1
Export carton cardboard 1 per 20 units Rs.4
Price tag paper 1 Rs0.4.
Thread dark blue , 3 ply 2 bobbibs Rs. 3.5
Overheads
Electricity Rs. 40/hr * 8* 2* 40
Indirect labour cost Rs. 450*7*2*40
Margin at 20% of total direct cost
Rent Rs. 250000 + 250000/3
Employee insurance Rs. 50000 * 48 * 40/ 365
TOTAL INDIRECT COST

profit= 30% of total raw material cost= 30% of (6278300-86800) = 1857450

Price= 6278300+ 2129603 + 1857450 = Rs.10265353
price per unit = 10265353/10000=1026.50
Per Unit Cost
Cost for 5000 units
Price/unit

Rs. 575 5750000

Rs. 12.25 122500
Rs. 12.50 125000

Rs. 0.90 9000

Rs. 0.80 8000
Rs. 0.20 2000
Rs. 0.30 3000
Rs.0.60 6000
Rs.8.00 80000
Rs.1 10000
Rs.0.2 2000
Rs0.40 4000
Rs. 7.00 70000

25,600
252000
1255660
333333.3
263010
2129603
 COST SHEET: Activity Based Costing (ABC)
Cost driver: labor
Budgeted Days: 40
Budgeted hours: 40*8*2 = 640 hrs.

Labor cost-source No of employees Rate/ hour budgeted hours

Management 3 salaried(30000 p.m.)
Departmental Heads
Cutting 1 salaried(27000 p.m.)
Sewing 1 salaried(27000 p.m.)
Shipping 1 salaried(27000 p.m.)
Supervisors
Line 1 1 salaried (25000 p.m.)
Line 2 1 salaried (25000 p.m.)
Line 3 1 salaried (25000 p.m.)
Other Indirect Labor
Mechanic 2 Rs. 30 640
Sweeper 4 Rs. 25 640
Chaiwala 3 Rs. 25 640
Inspector 3 Rs. 100 160
Pattern Maker 2 Rs. 100 10
Office Clerk 2 Rs. 90 640
Quality checker 2 Rs. 120 40
TOTAL INDIRECT LABOR COST
Direct Labor
Cutting 12 Rs. 45 32
Sewing 40 Rs. 45 560
Shipping 10 Rs 45 48
TOTAL DIRECT COST

Total cost = direct cost + indirect cost = 1700100

per garment cost = 1700100/5000=Rs. 340
Total wages for 40 days
120000

36000
36000
36000

33340
33340
33340

38400
64000
48000
48000
2000
115200
9600
653220

17280
1008000
21600
1046880