Formulas Flashcards
Return on Investment
After-tax Income / Divisional Assets
Residual Income
After-tax Income - (Cost of capital * Divisional Assets)
EVA
- Adjusted Profit= Divisional Income + R&D * (years)
- Adjusted Investment= Divisional Investment + R&D * (years) - Current Liabilities
- EVA= Adjusted Profit - Cost of Capital * Adjusted Investment
The Basic Flow Model
Beginning Balance + Transfers IN - Transfers OUT = Ending Balance
Predetermined Overhead Rate
Estimated Overhead / Estimated Allocation Base
Value Cost of Goods Sold
(((Inventories + Transferred direct materials * Purchased materials + Direct Labor Costs + Indirect Labor Costs + Manufacturing Overhead) * Completed WIP) * Sold Completed Goods)
Value Cost of Goods Sold, using Proration
- Determine if it’s under or over-applied.
- Calculate the new value.
3.
Applied Overhead
Actual direct costs * POH
Overapplied/Underapplied
Actual Manufacturing Overhead - Applied Overhead
Price Variance
(Actual Price - Standard Price) * Actual Quantity
Standard Costs
Standard Price * Standard Quantity
Efficiency Variance
Standard Price * (Actual Quantity - Standard Quantity)
Total Variance
Price Variance - Efficiency Variance
Production Volume Variance
(Actual Quantity - Standard Quantity) * Standard Overhead / Standard Quantity
Equivalent Units
Completed Goods + (Standard Goods - Completed Goods) * Ending WIP
Cost per Unit
(Materials + Conversion costs) / Equivalent Units
Finished Goods
Cost per Unit * Completed Goods
Sales Price Variance
Actual Sales Revenue - Actual Sales Quantity / Standard Sales Quantity * Standard Sales Revenue
Sales Activity Variance
(Actual Sales Quantity - Standard Sales Quantity) / Actual Sales Quantity * Standard Contribution Margin
Variable Overhead Efficiency Variance
Actual Units Produced * Standard Direct Labor (Hours) * Standard Variable Overhead Price - Actual Direct Labor (Hours) * Standard Variable Overhead Price
Variable Overhead Price Variance
Actual Variable Overhead - Actual Direct Labor * Standard Variable Overhead Price
