Suyom.

Jeffrey
Taboclaon, Krizza
Tasani, Gladly
B15

SYSTEMS DESIGN: JOB – ORDER COSTING

JOB- ORDER PROCESS
COSTING COSTING
Direct Materials
Direct labor Department
Factory Overhead Direct Materials
Direct Labor
A
Factory Overhead

Department
Job 101 Job 3 B
Job 102

Department
C
Finished Goods
Cost of
Goods Sold
Finished
Goods

Cost of Goods
Suyom. Jeffrey
Taboclaon, Krizza
Tasani, Gladly
B15

CM per Unit = Unit Selling price - Unit Variable Cost

CONTRIBUTION MARGIN CM Ratio = CM / Sales

BEP (UNITS) = Total Fixed Cost / CM per unit

BREAKEVEN PLANNING BEP (PESOS) = Total Fixed Cost/ CM ratio

BREAKEVEN PLANNING IN MULTI- Weighted CM per unit = (CM unit x Sales mix rate) + (CM unit x Sales mix rate)
PRODUCT FIRM BEP sales (combined units) = Total Fixed Cost / Weighted Ave. CM

BREAKEVEN PLANNING IN MULTI- BEP sales (combined pesos) = Total Fixed Cost / Weighted CM ratio
PRODUCT FIRM Weighted CM ratio = Total Weighted CM (P) / Total Weighted Sales (P)

Sales(units) = (Total Fixed Cost + Desired Profit) / CM per unit

REVENUE AND COST PLANNING Sales(P) = (Total Fixed Cost + Desired Profit) / CM Ratio

Margin of Safety = Budgeted sales - BEP sales

SENSITIVITY ANALYSIS Margin of Safety Ratio = Margin of Safety (P) / Budgeted sales

SENSITIVITY ANALYSIS Operating Leverage = CM / Net Operating Income