VII.1 - Formulerz (cost acct)

Question 1

Overhead allocation ($)

Answer 1

1) Est OH / Est Machine Hrs = Predeterm OH Rate (POH)
2) POR x actual machine hrs = allocated OH
3) Allocated OH - Actual OH = over/under applied OH

Question 2

Overhead Application rate ($/hr)

Answer 2

1) Est OH (fixed + var) / est cost driver (ex dir labor)

2) actual cost driver amount x OH application rate

Question 3

Schedule of COGManuf/COGS: Direct materials (Sec 1)

Answer 3

Beg Inv: Dir Mat
\+ DMat purchased
= DMat available
- Ending Inv DMat
= DMAT USED

Question 4

Schedule of COGManuf/COGS: Total Manufacturing Costs (Sec 2)
Only different sec of the 4 sections**

Answer 4

DMat used
+ Dir Labor
+ Manuf OH
= TOTAL MANUF COSTS

Question 5

Schedule of COGManuf/COGS: COG Manufactured (Sec 3)

Answer 5

Beg Inv: WIP
\+ Total Manuf Costs
= WIP available
- Ending Inv WIP
= COG MANUF

Question 6

Schedule of COGManuf/COGS: COGS (Sec 4)

Answer 6

Beg Inv: Finished Goods Inv
\+ COGManuf
= Goods available for sale
- Ending Inv Finished Goods
= COGS

Question 7

Total cost = ….

Answer 7

Fixed Cost + (Variable cost x Units)

Question 8

Variable Cost uses…. (what over what)

Answer 8

$ (OH Cost) / Units

Question 9

High/Low Method

Answer 9

1) $ (OH Cost) / Units = Variable Cost [rise over run fashion]
2) Fixed Cost + (Variable cost x Units) = Total Cost
(Solve for FC)

Question 10

Net realizable value (joint products)

Answer 10

1) (Prod 1: Size x sale price) / (Prod 1 + 2: Size x sale price)
2) Step 1 x joint costs = NRV

Question 11

Unit contribution margin (CM)

Answer 11

Revenue = Sale Price - Variable Cost

Question 12

Contribution margin ratio (CR)

Answer 12

Total Revenue = Unit contribution margin / Price

Detailed: Total Rev= [Price - Var cost] / Sale Price

Question 13

Break even (units)

Answer 13

Fixed cost / Cont Margin [Sale price - var cost]

Question 14

Break even ($)

Answer 14

Fixed cost / CR [(price - var) / price]

Question 15

Margin of safety

Answer 15

The margin of safety is the difference between current sales and breakeven sales. EX) BE sales are $120,000 ($200,000 (sales) - $80,000 (BE Sales)).

Question 16

General transfer pricing rule (Transfer price per unit)

Answer 16

Transfer price per unit = additional outlay cost per unit + opportunity cost per unit.