Standard Costing - Overheads and Sales Flashcards
How to work out Fixed overhead expenditure variance?
Actual overheads - (Budgeted output x OAR)
How to work out fixed overhead volume variance?
Actual output x OAR - Budgeted x OAR
How does the reconciliation statement compare from Marginal Costing to Absorption Costing?
Marignal only includes fixed overhead expenditure whereas Absorption includes fixed overhead expenditure and volume.
How to work out the budgeted/standard variable cost for actual production for Absorption?
Actual total fixed cost figure
How to work out the budgeted/standard variable cost for actual production for Marginal?
Budgeted total cost - fixed costs / budgteted production x actual production
Name uncontrollable costs?
Idle Time
National minimum wage
How does standard costing help with budgetary control?
Help plan and production - use variances from last period.
Help establish selling price
Plan future activity
How to work out the sales volume variance for marginal and absoprtion?
Marignal:
Contirbution x Actual quantity sold
Contribution x budgeted quantity sold
Absoprtion:
Profit per unit x Actual quantity sold
Profit per unit x Budgeted quantity sold
If actual overheads x OAR is bigger than budgeted x OAR is this a favourable or adverse variance?
Favourable
How to work out the sales price variance?
Actual sales revenue from quantity of goods sold - standard sales revenue from Actual quantity of goods sold
How to work out fixed overhead volume variance if in hours?
Actual output x OAR x Std Hours
Is the net total of the fixed overhead expenditure variance and the fixed overhead volume variance the amount of under or over absored fixed overheads?
Yes
Add or minus favourable variances?
Minus
If there is no budgeted figures in an expenditure and volume variance question, how should the triangle be manipulated?
Top left of triangle - Actual overheads
Top right of triangle - actual units x hourly charge x std hours per unit
Bottom - actual hours x hourly charge
