222 Final Exam Flashcards
Contribution margin ratio
(unit sale price-variable cost)/unit sale price
the resulting percentage will be the contribution margin
Variable Expense Ratio
=(total variable expenses/total sales) 100 or Variable Expense Ratio = variable expense per (unit/selling price)100
(Formula method) break even point in units
fixed expenses/contribution margin per unit
Break even point in sales dollars
total fixed expenses / contribution margin ratio
Break even price
(total fixed cost/volume of production) +variable cost per unit
Unit sales to attain the target profit
Target profit + Fixed expenses/CM per unit
Dollar sales to attain the target profit
Target profit + Fixed expenses/CM ratio
Percent of change
((Y2-Y1)/Y1)*100
POHR
Estimated total manufacturing overhead cost for the coming period/Estimated total units in the allocation base for the coming period
Applied Overhead
POHR × Actual Direct Labor Hours
Profit
(CM ratio × Sales) – Fixed expenses
Flexible budget
standard rate x actual activity
Quantity Variance
SP(AQ-SQ)
Price Variance
AQ(AP-SP)
Spending Variance and revenue variance
Flex budget vs actual
