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30 Cards in this Set
- Front
- Back
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Calculate Carges for a Job
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(Labor Charge per hour * Hours) +
(Cost of parts and materials) + (Material Loading Charge) |
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Total Budgeted Costs
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Fixed Costs + (VC Per Unit x Activity Level)
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Return on Investment
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Controllable Margin / Average Operating Assets
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Controllable Margin
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Contribution Margin - Controllable Fixed Costs
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Residual Income
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Controllable Margin - (Min. Rate of Return x Average Operating Assets)
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Total Materials Variance
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(AQ x AP) - (SQ x SP)
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Materials Price Variance
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(AQ x AP) - (AQ x SP)
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Materials Quantity Variance
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(AQ x SP) - (SQ x SP)
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Total Labor Variance
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(AH x AR) - (SH - SR)
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Labor Price Variance
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(AH x AR) - (AH x SR)
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Labor Quantity Variance
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(AH x SR) - (SH x SR)
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Total Overhead Variance
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Actual Overhead - Overhead Applied*
*based on standard hours allowed |
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Overhead Controllable Variance
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Actual Overhead - Overhead Budgeted*
*based on standard hours allowed |
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Overhead Volume Variance
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Overhead Budgeted* - Overhead Applied*
*based on standard hours allowed |
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Overhead Volume Variance relies solely to __________.
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Fixed Costs
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Overhead Volume Variance (second way)
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Fixed Overhead Rate x (Normal Capacity Hours - Standard Hours Allowed)
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Variances are reported on the __________.
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Income Statement
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Break-even Point in Units ( for sales mix)
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Fixed Costs / Weighted Average Unit Contribution Margin
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Cash Payback Period
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Cost of Capital Investment / Net Annual Cash Inflow
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Net Present Value
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Present Value of Future Cash Inflows - Capital Investment
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Discount rate used is determined by the ___________.
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Required rate of return.
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Profitability Index
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Present Value of Cash Inflows / Initial Investment
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Internal Rate of Return Factor
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Capital Investment / Net Annual Cash Inflow
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Finding the Internal Rate of Return
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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.
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Annual Rate of Return
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Expected Annual Net Income / Average Investment*
Average Investment = (Original Investment + Salvage Value) / 2 |
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Target Selling Price
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Cost + (Markup Percentage x Cost)
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Markup Percentage
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Desired ROI Per Unit / Total Unit Cost
(In other words, Target Selling Price = Total Unit Cost + Desired ROI Per Unit) |
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Labor Charge per hour
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Hourly Labor Rate Per Hour + OH Per Hour Charge + Profit Margin Per Hour
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Material Loading Charge
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(Overhead Costs / Total Invoice Cost, Parts and Materials) + Profit Margin
(as a percentage) |
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Minimum Transfer Price
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Variable Cost + Opportunity Cost
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