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30 Cards in this Set

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Calculate Carges for a Job
(Labor Charge per hour * Hours) +
(Cost of parts and materials) +
(Material Loading Charge)
Total Budgeted Costs
Fixed Costs + (VC Per Unit x Activity Level)
Return on Investment
Controllable Margin / Average Operating Assets
Controllable Margin
Contribution Margin - Controllable Fixed Costs
Residual Income
Controllable Margin - (Min. Rate of Return x Average Operating Assets)
Total Materials Variance
(AQ x AP) - (SQ x SP)
Materials Price Variance
(AQ x AP) - (AQ x SP)
Materials Quantity Variance
(AQ x SP) - (SQ x SP)
Total Labor Variance
(AH x AR) - (SH - SR)
Labor Price Variance
(AH x AR) - (AH x SR)
Labor Quantity Variance
(AH x SR) - (SH x SR)
Total Overhead Variance
Actual Overhead - Overhead Applied*

*based on standard hours allowed
Overhead Controllable Variance
Actual Overhead - Overhead Budgeted*

*based on standard hours allowed
Overhead Volume Variance
Overhead Budgeted* - Overhead Applied*

*based on standard hours allowed
Overhead Volume Variance relies solely to __________.
Fixed Costs
Overhead Volume Variance (second way)
Fixed Overhead Rate x (Normal Capacity Hours - Standard Hours Allowed)
Variances are reported on the __________.
Income Statement
Break-even Point in Units ( for sales mix)
Fixed Costs / Weighted Average Unit Contribution Margin
Cash Payback Period
Cost of Capital Investment / Net Annual Cash Inflow
Net Present Value
Present Value of Future Cash Inflows - Capital Investment
Discount rate used is determined by the ___________.
Required rate of return.
Profitability Index
Present Value of Cash Inflows / Initial Investment
Internal Rate of Return Factor
Capital Investment / Net Annual Cash Inflow
Finding the Internal Rate of Return
Find the Internal Rate of Return Factor, Look in Table 4 (Present Value of an Annuity of 1) for closest value under the given periods.
Annual Rate of Return
Expected Annual Net Income / Average Investment*

Average Investment = (Original Investment + Salvage Value) / 2
Target Selling Price
Cost + (Markup Percentage x Cost)
Markup Percentage
Desired ROI Per Unit / Total Unit Cost


(In other words, Target Selling Price = Total Unit Cost + Desired ROI Per Unit)
Labor Charge per hour
Hourly Labor Rate Per Hour + OH Per Hour Charge + Profit Margin Per Hour
Material Loading Charge
(Overhead Costs / Total Invoice Cost, Parts and Materials) + Profit Margin

(as a percentage)
Minimum Transfer Price
Variable Cost + Opportunity Cost