ACC406 Formula Sheet Final Exam

Chapter 2:
DM/Production = BI of Materials + DM Purchases – Return of DM – Ending RM Inventory
COGM = DM Used in Production + DL Used in Production + MOH Used in Production + Beginning WIP – Ending WIP
COGS = Beginning FG Inventory + COGM – Ending FG Inventory
Prime Cost = Direct Materials + Direct Labour
Conversion cost = Direct labour + Overhead
Unit Product Cost = Total product cost / number of units
Chapter 3:
Variable rate = High point cost – Low point cost / High point output – Low point output
Fixed cost = Total cost at high/low point – (Variable rate x Output at high/low output)
Chapter 4:
Contribution margin = Sales – Variable cost
Operating Income = Sales – Total variable expenses – Total fixed expenses OR
(Price x Number of Units Sold) – (VC per unit x number of units sold) OR
(Price x units sold) – (Unit variable cost x units sold) – Fixed cost
CM Per Unit = Selling Price/unit – Variable cost per unit
CM Ratio = Contribution Margin / Sales
Break even units = Total fixed cost / (Price – Variable cost per unit)
Break even sales = Total fixed expenses / CM Ratio
Equation approach for Break Even: (P x Q) – (Q x VCU) = FC
Q( P-VCU) = FC
Q(CM) = FC
No of units to earn target income = Fixed cost + Target income / Price – Variable cost per unit
Sales ($) to earn target income = Fixed cost + Target income / CM Ratio
Chapter 5:
Predetermined overhead rate = Overhead cost / Activity Level
Applied overhead = Predetermined overhead rate x Actual activity usage
Overhead variance = Applied overhead – Actual overhead
Actual > Applied = underapplied
Actual < Applied = overapplied
Chapter 7:
Cost Assigned to Product = Predetermined activity rate x Actual usage of activity
Chapter 9:
Production Budget = Expected Unit Sales + Units in Desired EI – Units in beginning inventory (BI)
DM Budget = DM Production x Per Unit + Desired EI – Beginning Inventory x Cost
DL Budget = Units produced x DL/unit x wage/hour
Overhead = Budgeted DL Hours x Variable overhead rate + Budgeted VOH + Budgeted FOH
Cash Budget = Beginning Balance + Cash Receipts – Disbursements = Expected Ending Balance
Cash Receipts = Credit sales x following quarter sales
Chapter 10:
Standard cost per unit = Quantity standard x price standard
Total budget variance = (AP x SQ) – (SP x SQ)
Price variance = (AP-SP) x AQ
OR
(AQ x AP) – (AQ x SP)
Usage variance = (AQ-SQ) x SP
OR
(AQ x SP) – (SQ x SP)
Materials price variance = (AP x AQ) – (SP x AQ)
Materials usage variance = (SP x AQ) – (SP x SQ)
Total labour variance = (AR x AH) – (SR x SH)
Labour rate variance = (AR x AH) – (SR x AH)
Labour effienecy variance = (AH x SR) – (SH x SR)
Chapter 11:
AVOR (overhead rate) = Actual variable overhead / Actual hours
Variable overhead spending variance = (AVOR x AH) – (SVOR x AH)
Variable overhead efficiency variance = (AH x SVOR) – (SH x SVOR)
Standard hours capacity = Unit standard x Units of practical capacity
SFOR = Budgeted fixed overhead costs / Practical capacity
Applied fixed overhead = SFOR x SH
Total variance = Actual fixed overhead – Applied fixed overhead
FOH spending variance = Actual fixed overhead – Budgeted fixed overhead
FOH volume variance = Budgeted fixed overhead – (SH x SFOR)
Chapter 13:
CM Per Unit of resource = CM Per Unit / Amount of scare resource
Price using markup = Cost per unit + (Cost per unit + Markup %)
Target cost = Target price – Desired profit