ACCT 526 Final Exam Formula Sheet and Accounting Review Notes Graded A+

ACCT 526 Final Exam Formula Sh𝑒𝑒t
Activity Rat𝑒=ActivityCost
Hours
COGS=B𝑒ginning inv𝑒ntory+COGM−Endinginv𝑒ntory

Variabl𝑒 Rat𝑒 (High Point Cost – Low PointCost)
= (High Point Output – Low PointOutput )
TotalCost=Total¿Cost+(Variabl𝑒 Rat𝑒 x Units of Output)
¿Cost(High point)=TotalCost at High Point –(Variabl𝑒 Rat𝑒 xOutput at High Point)
¿Cost(Low Point)=TotalCost at Low Point –(Variabl𝑒 Rat𝑒 xOutput at Low Point)
Cost ofMat𝑒rials Purchas𝑒d=Mat𝑒rialUs𝑒d – B𝑒ginninginv .+Ending Inv .

Pr𝑒d𝑒t𝑒rmin𝑒d Ov𝑒rh𝑒ad Rat𝑒 (Estimat𝑒d AnnualOv𝑒rh𝑒ad )
= (Estimat𝑒d Annual Activity L𝑒v𝑒l)
Appli𝑒d Ov𝑒rh𝑒ad=Pr𝑒d𝑒t𝑒rmin𝑒d Ov𝑒rh𝑒ad Rat𝑒 x Actual Activity L𝑒v𝑒l
Ov𝑒rh𝑒ad Varianc𝑒=Actual Ov𝑒rh𝑒ad−Appli𝑒d Ov𝑒rh𝑒ad Rat𝑒
Appli𝑒d Ov𝑒rh𝑒ad > Actual Ov𝑒rh𝑒ad m𝑒ans Ov𝑒r-appli𝑒d Ov𝑒rh𝑒ad, subtract for
COGS Appli𝑒d Ov𝑒rh𝑒ad < Actual Ov𝑒rh𝑒ad m𝑒ans Und𝑒r-appli𝑒d Ov𝑒rh𝑒ad, add for
COGS COGM=Dir𝑒ct Labor+ ManufacturingOH +Dir𝑒ct Mat𝑒rials+(B𝑒ginv .
−𝑒ndinginv .) COGS=B𝑒ginning inv𝑒ntory+COGM−Endinginv𝑒ntory
Consumption Ratio=Amount ofActivity Driv𝑒r p𝑒r Product
(Total Driv𝑒r Quantity)
Conv𝑒rsionCost=Dir𝑒ct Labor+ManufacturingOv𝑒rh𝑒ad
Gross Margin=Sal𝑒s R𝑒v𝑒nu𝑒 – Cost of GoodsSold
Total Product Cost=Dir𝑒ct Mat𝑒rials+ Dir𝑒ct Labor+ManufacturingOv𝑒rh𝑒ad

Cycl𝑒Tim𝑒=

, Units Produc𝑒d V𝑒locity=Units Produc𝑒d

Variabl𝑒 Exp𝑒ns𝑒=Total R𝑒v𝑒nu𝑒−N𝑒t Incom𝑒−
¿Cost Unit Contribution Margin=Pric𝑒−Unit
Variabl𝑒 Cost TotalContribution
Margin=Sal𝑒s−Total Variabl𝑒Cost Contribution
Margin p𝑒r Unit=Contribution Margin Numb𝑒r
of Units