Formula for exam 3 accounting
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labor spending variance
labor rate variance + labor efficiency variance
residual income
net operating income - (avg. operating assets X minimum required rate of return)
ROI
net operating income/avg. operating assets
margin
net operating income/sales
Throughput time
process time + inspection time + move time + queue time
MCE
process time/throughput time
Labor rate variance
AH(AR-SR)
Variable overhead rate variance
AH(AR-SR)
Materials price variance
AQ(AP-SP)
turnover
sales/avg. operating assets
Materials quantity variance
SP(AQ-SQ)
Labor efficiency variance
SR(AH-SH)
Variable overhead efficiency variance
SR(AH-SH)
standard quantity allowed for actual output
actual output X standard output
delivery cycle time
wait time + throughput time
