Scribd
Upload
722 views1 page

ACC406 Formula Sheet Final Exam

This document provides formulas and key concepts from various chapters of an accounting textbook. It includes formulas for calculating cost of goods manufactured, cost of goods sold, prime cost, conversion cost, unit product cost, variable rates, fixed costs, contribution margin, operating income, break-even analysis, predetermined overhead rates, variances, standard costs, budgets for production, materials, labor, overhead and cash. It also defines concepts like applied overhead, price and usage variances, materials and labor variances, volume and spending variances for overhead, target costing and pricing with a markup.

Uploaded by

Matthew Tesfaye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
722 views1 page

ACC406 Formula Sheet Final Exam

This document provides formulas and key concepts from various chapters of an accounting textbook. It includes formulas for calculating cost of goods manufactured, cost of goods sold, prime cost, conversion cost, unit product cost, variable rates, fixed costs, contribution margin, operating income, break-even analysis, predetermined overhead rates, variances, standard costs, budgets for production, materials, labor, overhead and cash. It also defines concepts like applied overhead, price and usage variances, materials and labor variances, volume and spending variances for overhead, target costing and pricing with a markup.

Uploaded by

Matthew Tesfaye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

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

You might also like