Managerial Account Flashcards
Material Price Variance =
= (Standard Price - Actual Price) * Actual Quantity Purchased
Material Usage Variance =
= (Standard Quantity - Actual Quantity) * Standard Price
Wage Rate Variance =
= (Standard Wage Rate ph - Actual Wage Rate) * Actual Hours Used
Labour Efficiency Variance =
= (Standard Labour Hours for actual production - Actual Labour Hours Worked) * Standard Wage Rate Per Hour
Selling Price Variance =
= (Standard Selling Price - Actual Selling Price) * Units Sold
Sales Volume Variance =
= (Budgeted Sales units in budgeted mix - Actual sales units in budgeted mix) * Standard CM per unit
Sales Mix Variance =
= (Actual sales units in budgeted mix - Actual sales unit in actual mix) * Standard CM per unit
Break Even Point =
= (FC + Desired Profit) / CM
CM (for one product) =
= Selling Price - VC
CM (for 2 or more products) =
= Selling Price - Contribution Ratio???
Net Profit =
= Sales - FC - CV
Sales =
= Units * Selling Price
Contribution Ratio =
= ????
CPU =
= (Sales - Variable Costs) / Units
What are Irrelevant Costs?
… Past cost, ignore in many cases.
What is an Opportunity Cost?
…
Which budget to use, original, flex or actual?
Do not use the original budget, only flex or actual.
Variance rates can be what?
Adverse or favourable.
Overhead Absorption Rate?
Budgeted Overheads / Total Labour Hours
