ACC 222 Exam 1 Formulas
Period Costs
All costs that are not product costs (All selling & administrative costs)
Total Direct Labor Hours
Direct Labor Cost ------------------------------ Direct labor wage rate/hr
Conversion Cost
Direct Labor Cost + Manufacturing Overhead Cost
Prime Cost
Direct Materials Cost + Direct Labor Cost
Total Incremental Cost
Direct materials per unit + Direct labor per unit+ Variable MO per unit
Total Fixed Manufacturing Cost
Fixed MO per unit X # of units budgeted
Fixed cost
Fixed cost per unit decreases as volume increases & Total fixed cost remains the same at all volume levels
Total Period Cost
Fixed selling expense + Fixed admin expense + Sales commissions + Variable admin expense (multiply total by # of units sold)
Manufacturing Overhead
Indirect materials, indirect labor, factory utilities, depreciation of factory buildings and equipment
Under/Overapplied overhead
Manufacturing Overhead Cost incurred - Manufacturing Overhead Cost applied* *Actual DLH X POR
Manufacturing Overhead Applied
Predetermined overhead rate X Amt. of actual allocation base incurred by the job
Contribution Margin
Selling price - Variable cost
Adjusted Cost of Goods Sold
Unadjusted Cost of Goods Sold + Underapplied/Overapplied overhead
Amount of M.O.H applied to Work in Process in the Cost of Goods Manufactured Schedule
predetermined overhead rate X actual amount of allocation base incurred in all jobs
Cost of Goods Available for Sale
Beginning Finished Goods Inventory + Cost of Goods Manufactured
Unadjusted Cost of Goods Sold
Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
Overhead cost at year end (w/ two jobs)
Direct labor X POR(other job's rate)* *Have to find rate! --> Direct labor/Overhead cost
Total Direct Manufacturing Cost
Direct manufacturing cost X # of units DMC (Direct materials per unit + Direct labor per unit
Product Costs
Direct materials + Direct labor + Manufacturing overhead
Total Product/Manufacturing Cost
Direct materials + Direct labor + Manufacturing overhead
Variable Cost
Direct materials + direct labor + MO (variable) + sales commissions + variable admin expense (Variable cost doesn't change w/ amt. of units sold! & Total variable cost increases as volume increases)
Estimated Total Manufacturing Overhead Cost
Est. total fixed MO cost + (Est. variable manufacturing overhead cost per unit of the allocation base X est. total amount of the allocation base)
Predetermined Overhead Rate
Estimated Manufacturing Overhead Cost* ----------------------------------- Estimated Amount of the Allocation Base *Est. total fixed MO+(Variable MO per hr X Est. total hrs)
Cost of Goods Manufactured
Total manufacturing costs + beginning Work in Process inventory - ending Work in Process inventory
Unit Product Cost
Total product cost / # of units
Total Indirect Manufacturing Cost
Total variable overhead cost + Total fixed overhead
Total MO Cost Incurred
Total variable overhead cost + Total fixed overhead TVOC is (variable overhead per unit X # units produced)
