Exam 3 Flashcards
Revenue Effect of Growth Component
(Actual Units sold in b - Actual Units sold in a) * a’s selling price
Cost Effect of Growth Component for VARIABLE COSTS
(Units of input required to produce b output in a - Actual Units of input in a) * a’s input price
Revenue Effect of Price Recovery Component
(Selling price in b - Selling price in a) * Actual Units sold in b
Cost Effect of Price Recovery Component for VARIABLE COSTS
(Input price in b - Input price in a) * Units of input require to produce b’s output in a.
Cost Effect of Price Recovery Component for FIXED COSTS
(Price per unit of capacity in b. - Price per unit of capacity in a) * Actual Units of capacity in a
Cost Effect of Productivity Component for VARIABLE COSTS
(Actual units of input for b - Units of input required to produce b’s output in a) * b’s input price
Cost Effect of Productivity Component for FIXED COSTS
(Actual units of capacity in b. - Actual Units of capacity in a) * Price per unit of capacity in b
Production-volume Variance (for Fixed Overhead costs)
BUDGETED fixed MoH - Fixed MoH allocated using BUDGETED cost per input allowed for ACTUAL output produced
JE for DM PRICE variance (when DM is purchased)
DR: DM Control (ACTUAL units purchased @ STRD price)
CR: A/P, Cash, ect
DR/CR: Price Variance depending on if it’s F/U
JE for DM EFFICIENCY variance (when DM is put into production)
DR: WIP (ACTUAL units produced @ STRD input rate @ STRD price)
CR: DM Control
DR/CR: Efficiency Variance depending on if it’s F/U
JE for Manufacturing Labor Price AND Efficiency variances
DR: WIP (STRD rate for ACTUAL amt of output @ STRD price)
CR: Wages Payable, Cash, ect.
DR/CR: Manufacturing Labor Price & Efficiency variances depending on if they are F/U
Price Variance for Direct Costs
(ACTUAL price - BUDGETED price) * ACTUAL amount of input PURCHASED (for DM) / USED (for Labor)
OR
Actual Results - Actual Qty @ Budgeted Price
Efficiency Variance for Direct Costs
(ACTUAL input USED - BUDGETED input USED for ACTUAL units produced) * BUDGETED price
OR
Actual Qty @ Budgeted Price - Flexible Budget
Measures of Financial Perspective on Balance Scorecard
Revenue, Market share, CM %, ROI, Residual Income, Price/Earnings Ratio
Measures of Internal Business Process Perspective on Balance Scorecard
Innovation, Operations, post sales, Managing capacity, Material, labor and OH variances, Reducing non-value added activities (waste, rejects), Turn around time
Measures of Customer Perspective on Balance Scorecard
Customer surveys after receiving service, Repeat customers, “Closure” rate, Market share, Referrals
Measures of Learning and Growth Perspective on Balance Scorecard
HR, Patents, Certifications, Turnover rates, Employee surveys, Training hours
Flexible Budget Variance
Actual Result - Flexible Budget amt
Sales-volume Variance
(ACTUAL qty - BUDGETED qty) * BUDGETED price
OR
Flexible Budget - Static Budget
Variable Overhead Efficiency Variance
(ACTUAL variable OH used for actual output - BUDGETED variable OH used for actual output) * BUDGETED cost
Variable Overhead Spending Variance
(ACTUAL cost - BUDGETED cost) * ACTUAL qty of variable overhead used for actual output
Fixed Overhead Spending Variance
ACTUAL costs - FLEXIBLE-budget amt
