Ch. 11 and 12 Flashcards
Standard cost of DM per case
Standard Quantity of DM * Standard Price of DM
Standard cost of DL per case
Standard quantity of DL * Standard Price of DL
Variable MOH rate
Total estimated variable MOH / Total estimated amount of the allocation base
Standard Variable MOH per case
Standard Quantity of Machine Hours * Variable MOH rate
Fixed MOH rate
Total estimated fixed MOH / Total estimated amount of the allocation base
Standard Fixed MOH per case
Standard Quantity of Machine Hours * Fixed MOH rate
- DM Price Variance
=Actual Quantity Purchased * (Actual Price-Standard Price)
=AQP * (AP-SP)
- DM Quantity Variance
=Standard Price * (Actual Quantity Used-Standard Quantity Allowed)
=SP * (AQU-SQA)
- DL Rate Variance
=Actual Hours * (Actual Rate - Standard Rate)
=AH * (AR-SR)
*DL Efficiency Variance
=Standard Rate * (Actual Hours - Standard Hours Allowed)
=SR * (AH-SHA)
Variable MOH rate variance
=Actual Hours * (Actual Rate - Standard Rate)
=AR * (AR-SR)
Variable MOH efficiency variance
=Standard Rate * (Actual Hours - Standard Hours Allowed)
=SR * (AH - SHA)
Standard Fixed Overhead Cost Allocated to Production
=Standard Hours Allowed * Standard rate
Payback Period
=Amount invested / Expected annual net cash inflow
- Accounting Rate of Return
=Average annual operating income from asset / Initial investment
