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9 Cards in this Set
- Front
- Back
Sales Volume variance =
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(Actual units sold - Budgeted sales units) x Standard contribution per unit
Like Q variance : AQ x SP - SQ x SP |
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Sales mix variance =
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( Actual product Sales mix ratio - Budgeted product Sales mix ratio) x Actual sold units x Budgeted contribution margin per unit
Like PRICE VARIANCE = (1) – (2) (1)AQ X AP ____(2)AQ x SP_____ (3) SQ x SP PRICE VARIANCE = (1) – (2) |
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Prime costs are ________ costs
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variable
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Sale in UNITS =
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sale / sale per unit
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Summary:
What are the six main formulas for calculating breakeven? |
CM = SRev - Var Costs
CMU = SPU - VCU BPU = TFC/CMU BPD = TFC/CMR CMR = CM/SRev BP w/Targeted Profit = TFC/CMU or CMR |
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Calculate Equivalent units W-Avg and FIFO
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Units completed ___________ XXX
Ending WIP % x completed + XXX Weighted-Avg. Equivalent units =XXX Beginning WIP % x completed - XXX FIFO Equivalent units ________=XXX |
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PRICE VARIANCE?
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(1) AQ X AP ____(2)AQ x SP_____ (3) SQ x SP
PRICE VARIANCE = (1) – (2) Materials purchase price variance Labor rate variances Variable OH spending variance |
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QUANTITY VARIANCE?
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QUANTITY VARIANCE = (2) – (3)
Materials quantity variance Labor efficiency variances Variable OH efficiency variance (1) AQ X AP ____(2)AQ x SP_____ (3) SQ x SP |
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To calculate the difference in NI using Variable costing VS Absorption costing:
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If level of Production if > than level of sale -> NI under Variable costing is < than under Absorption costing. To calc. 1) Difference in units = Production – sale units. 2) Difference in NI = (1) X Fixed cost / production units.
Variable costing = DL + DM + Variable OH. |