wq Sales+ Desired Ending Finished Goods- Begining Finished Goods
Purchases= Needed for Production + Ending Inventory wanted - Begining Inventory
Actual Cost Actual Price per unit * Actual Quantity of input used
Total Budget Varieance Actual Cost- Planned Cost
Price ( rate ) Variance Actual Price- Standard Price * Actual Quantity
Usage ( efficiency ) Varianc(Actual quantity- Standard Quantity) * Standard Prices
Chapter 7 Activity-Based Costing
Activity Rate Activity Cost (divide) Total Activity Driver
Assigned Cost Activity Rate x Actual Activity Usage
Consumption Ratio Activity Usage by Product (divide) Total Usage
Unit Cost (ABC) (Prime Cost + Allocated Overhead) divide by Units
Chapter 9 Budgeting and Master Budget
Production Budget Units to Produce= Expected Sales + Desired Eng FG - Beginning FG
Direct Materials Needed Units to Produce x DM per unit
Direct Labour Cost (Units to Produce x DL Hours per Unit) x Wage
Cash Budget Ending Balan Beginning Cash + Cash Receipts - Payments + Borrowing- Repayments
Chapter 10 Standard Costing and Variences
Materials Price Varience (AP - SP) x AQ
Materials Usage Varience (AQ - SQ) x SP
Labour Rate Varience (AR - SR) x AH
Labour Efficiency Varience (AH - SH) x SR
Chapter 11 Flexible Budgers and OVerhead Variences
Flexible Budget Formula (Variable Cost Per Unit x Activity Units) + Fixed Costs
VOH Spending Varience (AVOR - SVOR) x AH
VOH Efficiency Varience (AH - SH) x SVOR
Fixed OH Volume VarienceBuggeted FOH - Applied FOH
,d - Begining Inventory
,Question 1 (7 marks)
Thompson Company uses activity-based costing to figure product cost. Three activities and their rates have been d
Setting up equipment $500 per setup
Moving goods $20 per move
Machining $4 per machine hour
Thomspon provided the following data for Job #345
Direct materials $2,000
Direct Labor $1,800
Setups 1
Moves 30
Machine Hours 900
Required:
A. Calculate the overhead applied to Job #345
B. Calculate the total cost of Job #345
C. If the price is calculated by applying a 30% markup on cost, what is the price Job #345?
Answer:
A.
Steups: 500
Moves: 600
Machining: 3600
Total OH: 4700
B.
Total Cost of job
Add all the costs
OH+ DM+ DL
$8,500
C.
Markup of 30 30%--> 1+0.30=1.30
Cost* the markup
$11,050
,nd their rates have been determined:
Purchases= Needed for Production + Ending Inventory wanted - Begining Inventory
Actual Cost Actual Price per unit * Actual Quantity of input used
Total Budget Varieance Actual Cost- Planned Cost
Price ( rate ) Variance Actual Price- Standard Price * Actual Quantity
Usage ( efficiency ) Varianc(Actual quantity- Standard Quantity) * Standard Prices
Chapter 7 Activity-Based Costing
Activity Rate Activity Cost (divide) Total Activity Driver
Assigned Cost Activity Rate x Actual Activity Usage
Consumption Ratio Activity Usage by Product (divide) Total Usage
Unit Cost (ABC) (Prime Cost + Allocated Overhead) divide by Units
Chapter 9 Budgeting and Master Budget
Production Budget Units to Produce= Expected Sales + Desired Eng FG - Beginning FG
Direct Materials Needed Units to Produce x DM per unit
Direct Labour Cost (Units to Produce x DL Hours per Unit) x Wage
Cash Budget Ending Balan Beginning Cash + Cash Receipts - Payments + Borrowing- Repayments
Chapter 10 Standard Costing and Variences
Materials Price Varience (AP - SP) x AQ
Materials Usage Varience (AQ - SQ) x SP
Labour Rate Varience (AR - SR) x AH
Labour Efficiency Varience (AH - SH) x SR
Chapter 11 Flexible Budgers and OVerhead Variences
Flexible Budget Formula (Variable Cost Per Unit x Activity Units) + Fixed Costs
VOH Spending Varience (AVOR - SVOR) x AH
VOH Efficiency Varience (AH - SH) x SVOR
Fixed OH Volume VarienceBuggeted FOH - Applied FOH
,d - Begining Inventory
,Question 1 (7 marks)
Thompson Company uses activity-based costing to figure product cost. Three activities and their rates have been d
Setting up equipment $500 per setup
Moving goods $20 per move
Machining $4 per machine hour
Thomspon provided the following data for Job #345
Direct materials $2,000
Direct Labor $1,800
Setups 1
Moves 30
Machine Hours 900
Required:
A. Calculate the overhead applied to Job #345
B. Calculate the total cost of Job #345
C. If the price is calculated by applying a 30% markup on cost, what is the price Job #345?
Answer:
A.
Steups: 500
Moves: 600
Machining: 3600
Total OH: 4700
B.
Total Cost of job
Add all the costs
OH+ DM+ DL
$8,500
C.
Markup of 30 30%--> 1+0.30=1.30
Cost* the markup
$11,050
,nd their rates have been determined:
