B2 Flashcards
How do you Calculate DM Price Variance (PURE) (DADS)
Actual Quantity purchased x (Actual Price - Standard Price)
How do you Calculate DM Quantity Usage Variance (PURE) (DADS)
Standard Price x (Actual quantity used - Standard quantity allowed)
How do you Calculate DL rate variance (PURE) (DADS)
Actual hours worked x (Actual rate - Standard Rate)
How do you Calculate DL Efficiency Variance (PURE) (DADS)
Standard Rate x (Actual hours worked - Standard Hours Allowed)
VOH Rate (spending) Variance
Actual Hours x (Actual Rate - Standard Rate)
VOH Efficienty Variance
Standard rate x (Actual hours - Standard hours allowed for actual production volume)
FOH budget (Spending) variance
Actual fixed overhead - Budgeted fixed overhead
FOH volume variance
Budgeted fixed overhead - (Actual production x Standard Rate)
Mnemonics SAD, PURE & DADS
SAD: Standard - Actual = Variance PURE: P-Price variance(for DM), U-Usage (quantity) variance (for DM), R-Rate Variance (for DL), and Efficiency Variance (for DL) DA - Difference x Actual - P DS - Difference x Standard - U DA - Difference x Actual - R DS - Differenve x Actual - E
How do you Calculate Sales Price Variance
[Actual SP/Unit - Budgeted SP/Unit] x Actual Sold Units
How do you Calculate Sales Volume Variance
[Actual sold units - Budged Sales Units] x Standard contribution margin per unit
4 parts of a Balanced Scorecard (FICA)
F - Financial: Responsibility Segment/SBU
I - Internal Business Processes - Efficient/effective operations
C - Customer Satisfaction - Customers Happy
A - Advancement of innovation and human resource development (learning and growth) - Employees happy
What is Margin of Safety and How is it calculated?
The margin of Safety is the difference between sales and breakeven sales.
Breakeven Sales = Fixed costs/Contribution margin ratio
Sales-Breakeven Sales = Margin of Safety
