MR Dashboard Activity Based Costing for Excel

ABC for Excel Manual

Scenario
Start with the Scenario sheet. Enter your company information in the white cells. In the table with blue title enter your company indirect costs starting in cells B5 and C5. The column B will have the indirect costs / overhead such as salaries, rent, insurance, accounting, management, administration, AR/AP, IT, etc. In the column C enter the amount for each cost. Next enter your company departments in the table with red title (column E starting with cell E5) and your company activities in column G starting with cell G5. Use the yellow title table for your products and services type the name of your products and/or services in column I starting with cell I5. Enter the number of products/services sold in column J for each product/service in column I. In column K enter the selling price for your products and services and the direct costs (COGS / Cost of Goods Sold) for each product/service in column L.

When you enter all the information in Scenario sheet click the red Templates button to create the templates for your scenario and proceed with the next step working with the templates.

Templates
With a click of the Templates button 3 templates are automatically created based on your company scenario. The first template is the 1. Departments sheet where you need to allocate your indirect costs to departments by using % of costs method. In this example the indirect cost 1 is allocated 100% to Department 1 and the indirect costs 2 is allocated 50% to Department 2 and 50% to Department 3. The column B shows the total % allocated which always has to be 100%.

Copyright 2010 MR Dashboard. All Rights Reserved.

Activity Based Costing for Excel

The second template is the 2. Activities sheet where you need to allocate your Department Costs to Activities by using % of costs method. In this example the Department 1 is allocated 100% to Activity 1 and Department 2 is allocated 50% to Activity 1 and 50% to Activity 2 .

The third template is the 3. Cost Objects sheet where you need to allocate your Activity Costs to Cost Objects (your products and/or services) by using % of costs method. In this example the Activity 1 is allocated 30% to Product 1 and 70% to Product 2.

Copyright 2010 MR Dashboard. All Rights Reserved.

Activity Based Costing for Excel

Report
When you finish working with the templates go to Scenario sheet and click on the Report button. This will run the ABC model and will do all ABC calculations based on your company information and will create the ABC Report in the ABC Report sheet.

Note: If you make changes to the Scenario sheet you have to create new templates and new ABC report by using the two buttons in the Scenario sheet by following the same process described in this manual.
Running the ABC Model and Creating ABC Report can take from few seconds to 15 minutes depending on your computer speed and the volume of your data.

Copyright 2010 MR Dashboard. All Rights Reserved.

Activity Based Costing for Excel