BUS-187 Exam 2

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Units Completed and Transferred Out + Equivalent Units of Ending Work in Process

Equivalent Units of Production
Units Completed and Transferred Out-Materials + Equivalent Units of Ending Work in Process-Materials

Equivalent Units of Production - Materials
Units Completed and Transferred Out-Conversion Costs + Equivalent Units of Ending Work in Process-Conversion Costs

Equivalent Units of Production - Conversion Costs
Total Materials Cost ÷ Equivalent Units of Materials

Unit Materials Cost (Answer in $)
Total Conversion Costs ÷ Equivalent Units of Conversion Costs

Unit Conversion Cost (Answer in $)
Unit Materials Costs ÷ Unit Conversion Cost

Total Manufacturing Cost per Unit (Answer in $)
Estimated Manufacturing Overhead ÷ Estimated Overhead per Activity

Predetermined Overhead Rate - Traditional Approach (Answer in %)
Estimated Overhead per Activity ÷ Expected Use of Cost Drivers per Activity

Activity-Based Overhead Rate (Answer in $)
Sales - Costs

Operating Income
Change in Total Costs ÷ High minus Low Activity Level

Variable Cost per Unit
Unit Selling Price - Unit Variable Costs

Contribution Margin per Unit (Answer in $)
Contribution Margin per Unit ÷ Unit Selling Price;
(Unit Selling Price - Unit Variable Costs) ÷ Unit Selling Price

Contribution Margin Ratio (Answer in %)
Variable Costs + Fixed Costs + Net Income

Sales (Answer is "Q" in Units)
Fixed Costs ÷ Contribution Margin per Unit;
Fixed Costs ÷ (Unit Selling Price - Unit Variable Costs)

Break-even Point in Units
Fixed Costs ÷ Contribution Margin Ratio;
Fixed Costs ÷ (Contribution Margin per Unit ÷ Unit Selling Price);
Fixed Costs ÷ [(Unit Selling Price - Unit Variable Costs) ÷ Unit Selling Price]

Break-even Point in Dollars
Variable Costs + Fixed Costs + Target Net Income

Ex.
$500Q = $300Q + $200,000 + $120,000

Where: Q = sales volume; $500 = selling price; $300 = variable costs per unit; $200,000 = total fixed costs

Required Sales
(Fixed Costs + Target Net Income) ÷ Contribution Margin per Unit;
(Fixed Costs + Target Net Income) ÷ (Unit Selling Price - Unit Variable Costs)

Required Sales in Units
(Fixed Costs + Target Net Income) ÷ Contribution Margin Ratio;
(Fixed Costs + Target Net Income) ÷ (Contribution Margin per Unit ÷ Unit Selling Price);
(Fixed Costs + Target Net Income) ÷ [(Unit Selling Price - Unit Variable Costs) ÷ Unit Selling Price]

Required Sales in Dollars
Actual (Expected) Sales - Break-even Sales

Margin of Safety in Dollars
Margin of Safety in Dollars ÷ Actual (Expected) Sales;
[Actual (Expected) Sales - Break-even Sales] ÷ Actual (Expected) Sales

Margin of Safety Ratio

Author

Anonymous

43668

Card Set

BUS-187 Exam 2

Description

Chapters 16-18

Updated

2010-10-20T11:48:10Z