CHAPTER 14, 15, 17, 18 FORMULAS

Question 1

Total Manufacturing Cost

Answer 1

Direct materials used + Direct labor used + Factory overhead

Question 2

Direct materials used

Answer 2

Total raw materials available for use - Raw materials, ending

Question 3

Total raw materials available for use

Answer 3

Raw materials inventory, beginning + Raw materials purchases

Question 4

Total factory overhead

Answer 4

Indirect labor + Depreciation expense (factory) + Factory utilities

Question 5

Total cost of work in process

Answer 5

Total manufacturing costs + Work in process, beginning

Question 6

Cost of goods manufactured

Answer 6

Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory

Question 7

Cost of goods sold

Answer 7

Cost of goods available for sale - Finished goods inventory, ending

Question 8

Goods available for sale

Answer 8

Finished goods inventory beginning + Cost of goods manufactured

Question 9

Raw materials inventory turnover

Answer 9

Raw materials used ÷ Average raw materials inventory

Question 10

Average materials inventory

Answer 10

Beginning materials inventory + Ending raw materials inventory ÷2

Question 11

Ending raw materials inventory

Answer 11

Beginning raw materials inventory + Raw materials purchases − Direct materials used

Question 12

Days’ sales in raw materials inventory

Answer 12

Ending raw materials ÷ Raw materials used × 365

Question 13

Target cost

Answer 13

Expected selling price - Desired profit

Question 14

Desired profit

Answer 14

Target margin x Price of one unit

Question 15

Cost per unit

Answer 15

Total cost ÷ Total numbers of units in job lot

Question 16

Predetermined overhead rate

Answer 16

Estimated overhead costs ÷ Estimated activity base

Question 17

Applied overhead

Answer 17

Predetermined overhead rate x Actual activity base used

Question 18

Gross profit ratio

Answer 18

Service revenue - Cost of service ÷ Service revenue

Question 19

Plant wide overhead

Answer 19

Budgeted overhead cost ÷ Budgeted allocation base (DLH/Direct labor hours)

Question 20

Overhead allocated

Answer 20

Plant-wide overhead rate x DLH used

Question 21

Departmental overhead rate

Answer 21

Budgeted departmental overhead cost ÷ Budgeted departmental allocation base

Question 22

Activity rate

Answer 22

Budgeted activity cost ÷ Budgeted activity usage

Question 23

Allocated cost

Answer 23

Actual activity usage x Activity rate

Question 24

Customer support activity rate

Answer 24

Budgeted customer cost ÷ Budgeted technician miles

Question 25

Contribution margin per unit

Answer 25

Selling price per unit - Variable costs permit

Question 26

Contribution margin ratio

Answer 26

Contribution per unit ÷ Selling price unit

Question 27

Break-even point in units

Answer 27

Fixed costs ÷ Contribution margin per unit

Question 28

Break-even point in dollars

Answer 28

Fixed costs ÷ Contribution margin ratio

Question 29

Margin of safety ( in percent %)

Answer 29

Expected sales - Break-even sales ÷ Expected sales

Question 30

Dollar sales at target income

Answer 30

Fixed costs + Target income ÷ Contribution margin ratio

Question 31

Ending overhead

Answer 31

Actual manufacturing - Actual overhead

Question 32

Factory overhead cost

Answer 32

Predetermined overhead allocated rate x Actual quantity overhead

Question 33

Variable cost per unit

Answer 33

Highest cost - Lowest cost ÷ Highest number of units - Lowest number of units

Question 34

Break-even sales in units

Answer 34

Fixed costs + Target Profit ÷ Contribution margin per unit

Question 35

Overhead rate per labor hour

Answer 35

Total overhead ÷ Direct labor hours

Question 36

Total overhead cost per unit

Answer 36

Per hour rate x Direct labor hours