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9 Cards in this Set
- Front
- Back
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OAR equation |
Budgeted overhead/budgeted activity |
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Inventory ledger account debits |
Opening balance Materials purchased Materials returnedin |
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Inventory credit |
Issues Return to suppliers Production overheads Closing balance |
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Apportion overhead equation |
Total overhead/ total basic x basis department |
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Direct apportion method |
Ignore any reciprocal service centres when reapportioning |
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Step down method |
Reapportion service that does the most work for the other into service and production centres then apportion second service centre into production |
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Over absorption good |
Absorbed higher than actual |
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Under absorption |
Actual higher than absorbed |
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Activity based costing |
Group production overhead into activities according in how they are driven
Identify cost driver for each activity, what causes cost to be incurred Calculate cost driver per activity = cost pool divide by total cost drivers Multiply by products Overhead per unit / by unit quantity |
