ACCT 5314 Cost & Managerial Accounting

ACCT 2301 – Managerial Accounting

Instructor: Tom Downen Spring 2008 Texas Tech University

Exam 2 (Chapters 5 – 8) Formulas / Study Sheet

·  Predetermined Overhead Rate (POHR) / Estimated OH Cost / Estimated Volume of Cost Driver
·  Total Quality Management (TQM) / Minimizing total quality costs requires balancing Voluntary Costs (Prevention + Appraisal) against Failure Costs (Internal + External)
·  Inventory Purchases Budget Format / Budgeted COGS
+ Desired Ending Inventory
- Beginning Inventory
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Required Purchases
·  Cash Budget Format / Beginning Cash Balance
+ Cash Receipts
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Total Cash Available
Cash Pmts for Inventory
Cash Pmts for SG&A Exp
Cash Pmts for Interest
Cash Pmts for Fixed Assets
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Total Disbursements
Total Cash Available
- Total Disbursements
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Cash Surplus (Shortage)
+ Borrowings (Repayments)
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Ending Cash (Cushion)
·  Sales Volume Variance / (Actual Sales Volume – Budgeted Sales Volume) X Budgeted Sales Price
·  Sales Price Variance / (Actual Sales Price – Budgeted Sales Price) X Actual Sales Volume
·  Total Sales Variance / (Sales Volume Variance + Sales Price Variance)
·  Materials Usage Variance / (Standard Materials Volume – Actual Materials Volume) X Standard Materials Unit Price
·  Materials Price Variance / (Standard Mat’ls Unit Price – Actual Mat’ls Unit Price) X Actual Materials Volume
·  Total Materials Variance / (Mat’ls Usage Variance + Mat’ls Price Variance)
·  Labor Usage Variance / (Standard Labor Volume – Actual Labor Volume) X Standard Labor Rate
·  Labor Price Variance / (Standard Labor Rate – Actual Labor Rate) X Actual Labor Volume
·  Total Labor Variance / (Labor Usage Variance + Labor Price Variance)
·  Fixed Overhead Volume Variance / (Applied Fixed OH Cost – Budgeted Fixed OH Cost)
·  Fixed Overhead Spending Variance / (Budgeted Fixed OH Cost – Actual Fixed OH Cost)
·  Total Fixed Overhead Variance / (OH Volume Variance + OH Spending Variance)

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