Controlling 1

Question 1

Term to express labor

Answer 1

DL direct labor

Question 2

How to create a schedule of expected collections from sales?

Answer 2

-x: months that are looked it (anbd total column for quarter/year)
-y: all months/quarters money is expected to come from (and total column for expected cash collections)

Question 3

How to calculate budgeted production units?

Answer 3

Estimated unit sales
+ desired ending finishied goods inventory
=total finished goods needs
-beginning FG inventory
= biudgeted production units

Question 4

Calculate manufacturing overhead

Answer 4

varaible overhead + fixed manufacturing overhead

Question 5

Is depreciation a part of overhead costs?

Answer 5

-yes
-will only be expected if it is asked for expected payments

Question 6

Calculate budgeted $ manufacturing overhead costs

Answer 6

budgeted DL hours
* var. OH. rate per DL hour
= budgeted var. man. OH.
+ fixed man. Ovh. cost
= budgeted % Man. Ovh. costs

Question 7

Calculate predetermined overhead rate

Answer 7

budgeted $ manufacturing overhead costs / budgeted units in allocation base
–> can be splitted in fixed and variable

Question 8

Define budgeted units in allocation base

Answer 8

-describes the number of DL or machine hours the overhead is calculated for

Question 9

Calculate operating expenses budget

Answer 9

budgeted sales * variable expense ratio + fixed expenses

Question 10

Calculate expected payments for operated expenses

Answer 10

budgeted operating expenses - noncash expenses (depreciation, bad dept)

Question 11

How to calculate whether borrowing is needed?

Answer 11

1. calc total cash collections
2. calculate total expected payments
3. sum = excess of cash/cash deficiency

Question 12

Which rows are needed for a loan cash budget?

Answer 12

1. Excess of cash / cash deficiency
2. Financing
   -Borrowing
   -Principal Repayments
   -Interest Payments
   -Net effect of financing
   -ending cash balance

Question 13

Components direct material variance

Answer 13

1) Price variance
2) Quantity variance

Question 14

Calculate price variance

Answer 14

PV = (actual quantity * actual price) – (actual quantity * standard price)
Caution: use the total quantity (for actual quantity) that was purchased

Question 15

Calculate the quantity variance

Answer 15

(Actual quantity * standard price) – (standard quantity * standard price)
Caution: use only the quantity (for actual quantity) that is/was needed for production

Question 16

Components direct labor variance

Answer 16

1) direct labor rate variance
2) direct labor time (efficiency variance)

Question 17

Calculate direct labor rate variance

Answer 17

RV = (actual hours * actual rate) – (actual hours * standard rate)

Question 18

Calculate direct labor time variance

Answer 18

TV = (Actual hours * standard rate) – (standard hours * standard rate)

Question 19

What is the standard cost card

Answer 19

gives the standard costs per unit of end product for different criteria

Question 20

Components standard cost card

Answer 20

1) Direct materials: material requirement per unit of end product * price
2) Direct labor: labor requirement per unit * wage
3) Variable overhead: labor requirement * variable overhead
4) Fixed overhead: fixed overhead / standard total labor
5) Standard cost per unit: total of costs above

Question 21

Components variable overhead variance

Answer 21

1) Var. Ovh. spending variance
2. Var. Ovh. efficiency variance

Question 22

Calculate Var. Ovh. spending variance

Answer 22

SV = (actual hours * actual rate) – (actual hours * standard rate)

Question 23

Calculate var. Ovh. efficiency variance

Answer 23

EV = (Actual hours * standard rate) – (standard hours * standard rate)

Question 24

Components fixed Ovh. variance

Answer 24

1) Budget variance
2) Volume variance

Question 25

Calculate budget variance

Answer 25

actual fixed overhead incurred - fixed overhead budget

Question 26

Define actual fixed overhead incurred

Answer 26

-fixed overhead costs actually incurred on the actual working level

Question 27

Define fixed overhead budget

Answer 27

overhead budget which was calculated using the denominatior/allocation base level (standard costs)

Question 28

Calculate volume variance

Answer 28

fixed overhead budget - fixed overhead applied

Question 29

Define fixed Ovh. applied

Answer 29

-SH at SR (during the year)
-rate from the allocation base level
-SH from the allowed hours during the year

Question 30

Does the var. man. ovh. efficiency variance say something about DL efficiency variance?

Answer 30

-yes it they can both be traced back to the same allocation base DL hours