Controlling 1 Flashcards
(30 cards)
Term to express labor
DL direct labor
How to create a schedule of expected collections from sales?
-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)
How to calculate budgeted production units?
Estimated unit sales
+ desired ending finishied goods inventory
=total finished goods needs
-beginning FG inventory
= biudgeted production units
Calculate manufacturing overhead
varaible overhead + fixed manufacturing overhead
Is depreciation a part of overhead costs?
-yes
-will only be expected if it is asked for expected payments
Calculate budgeted $ manufacturing overhead costs
budgeted DL hours
* var. OH. rate per DL hour
= budgeted var. man. OH.
+ fixed man. Ovh. cost
= budgeted % Man. Ovh. costs
Calculate predetermined overhead rate
budgeted $ manufacturing overhead costs / budgeted units in allocation base
–> can be splitted in fixed and variable
Define budgeted units in allocation base
-describes the number of DL or machine hours the overhead is calculated for
Calculate operating expenses budget
budgeted sales * variable expense ratio + fixed expenses
Calculate expected payments for operated expenses
budgeted operating expenses - noncash expenses (depreciation, bad dept)
How to calculate whether borrowing is needed?
- calc total cash collections
- calculate total expected payments
- sum = excess of cash/cash deficiency
Which rows are needed for a loan cash budget?
- Excess of cash / cash deficiency
- Financing
-Borrowing
-Principal Repayments
-Interest Payments
-Net effect of financing
-ending cash balance
Components direct material variance
1) Price variance
2) Quantity variance
Calculate price variance
PV = (actual quantity * actual price) – (actual quantity * standard price)
Caution: use the total quantity (for actual quantity) that was purchased
Calculate the quantity variance
(Actual quantity * standard price) – (standard quantity * standard price)
Caution: use only the quantity (for actual quantity) that is/was needed for production
Components direct labor variance
1) direct labor rate variance
2) direct labor time (efficiency variance)
Calculate direct labor rate variance
RV = (actual hours * actual rate) – (actual hours * standard rate)
Calculate direct labor time variance
TV = (Actual hours * standard rate) – (standard hours * standard rate)
What is the standard cost card
gives the standard costs per unit of end product for different criteria
Components standard cost card
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
Components variable overhead variance
1) Var. Ovh. spending variance
2. Var. Ovh. efficiency variance
Calculate Var. Ovh. spending variance
SV = (actual hours * actual rate) – (actual hours * standard rate)
Calculate var. Ovh. efficiency variance
EV = (Actual hours * standard rate) – (standard hours * standard rate)
Components fixed Ovh. variance
1) Budget variance
2) Volume variance
