BEC Ratios (Cost Accounting) Flashcards
Prime Costs
DM + DL
Conversion Costs
DL + Manufacturing OH
Cost of Good Manufactured
DM used + DL incurred + OH applied = cost added to production + beg. WIP inventory - end. WIP inventory = COGM
Break Even in Units
fixed cost / Sales Price - VC (CM)
Break Even in Sales Dollars
fixed cost / CM Ratio (cm/sales price)
Composite Units Sold
total CM / CM per unit
Contribution Margin Ratio
(sales - variable costs) / sales
Direct Materials Price Variance (DMPV) (Purchasing)
actual quantity purchased x (standard cost per unit - actual cost per unit)
DMPV = AQP x (SC - AC)
Direct Materials Usage Variance (DMUV) (Production)
standard cost x (standard quantity allowed - actual quantity used)
DMUV = SC x (SQA - AQU)
Direct Labor Rate Variance (DLRV) (Personnel)
actual hours x (standard rate - actual rate)
DLRV = AH x (SR - AR)
Direct Labor Efficiency Variance (DLEV) (Production)
standard rate x (standard hours - actual hours)
DLEV = SR x (SH - AH)
Overhead Applied (OA)
standard direct labor hours x predetermined OH rate
OA = SDLH x POHR
Overhead Spending Variance (OSV)
(actual DL hours x predetermined VOH rate + budgeted fixed OH) - actual OH
OSV = (ALDH x PVOHR + Budgeted FOH - Actual FOH)
Overhead Efficiency Variance (OEV)
predetermined VOH x (standard DL hours - actual DL hours)
OEV = PVOH x (SDLH - ADLH)
Overhead Production Volume Variance (OVV)
(standard DL hours x predetermined FOHR) - budgeted fixed OH
(SDLH x PFOHR) - Budgeted FOH
One Variance Method
Net OH Variance
Two Variance Method
Budget (Controllable) / Volume (Non-Controllable)
Three Variance Method
Spending / Efficiency / Volume
Four Variance Method
Fixed / Variable Spending / Efficiency / Volume
Weighted Average Approach
Total Cost / Total Equivalent Units = Cost per Unit
FIFO Approach
costs this period / units worked on this period = cost per unit
Variable OH Spending Variance
(standard variable OH rate - actual variable OH rate) x actual usage
or
(actual price - standard price) x actual quantity
Predetermined OH Rate
estimated total OH costs / est total DLH or other divisors
Margin of Safety: excess of sales over break even sales
MS in dollars: total sales in dollars - break even sales in dollars
MS as % of sales: margin of safety in dollars / total sales
Variable Cost per Unit
(costs at high - cost at low) = changes in cost
(activities at high - act at low) changes in activities
Total Fixed Cost
total cost - (variable cost per unit x activity) = fixed cost
OH Rate
estimated annual OH / estimated annual DL
Variable OH Efficiency Variance
standard variable OH Rate x ( actual DL hours - budgeted DL hours)
Applied Fixed OH Costs
Standard direct-labor hours (DLH) × Fixed overhead rate per DLH
Fixed OH Volume Variance (Production Volume Variance)
Budgeted Fixed OH - Applied Fixed OH
