Section 1 formula review etc Flashcards
what is a DR amount in the MOH account mean
that manufacturing overhead was under applied
What is a CR amount in the MOH account mean?
that manufacturing overhead was over applied
How do you calculate the variable cost for the high low method?
costs (high - low) = x
units (high - low) = y
x/y = variable cost per unit
How do you calculate the fixed cost element using the high low method
high cost - (high unit x variable cost)
how do you express the total cost using high low method in a formula format
whatever costs = fixed element amount + variable amount (units)
How do you calculate the cost for a month using the units
fixed element + variable amount (units for month)
How do you calculate AB overhead rate
est overhead / expected use of cost drivers
how do you calculate costs assigned for abc
expected use of cost drivers x ab overhead rate
how do you calculate total costs assigned using abc
add up all costs assigned for that product
how do you calculate overhead cost per unit using abc
total costs assigned / units produced
In ABC how do you compute unit costs?
Dir material +
Dir Labour +
MOH
same as all the rest
IN ABC how do you calculate gross profit?
selling price - per unit cost = gross profit
