Cost Classification
Wages of workers assembling a product?
DL
When do you find POHR? Beginning, during, or after?
Beginning
What document tracks DM, DL, & MOH applied for a job?
Job cost sheet
Put in order: FG, WIP, RM, COGS.
What is the contribution margin formula?
Sales revenue- variable expenses= CM. It is the amount available to cover fixed expenses and then provide profits for the period.
Factory supervisor salary?
MOH
What is the formula for POHR?
Est. total MOH / Est. allocation base.
Which document shows materials taken from the storeroom for a job?
Materials requisition form
A product is being manufactured right now. Where is its cost?
WIP
What is the contribution margin income statement formula?
Freight in (On raw materials)?
DM
What is the formula for finding applied MOH?
POHR * ACTUAL allocation base.
Job A: DM $4,000; DL $3,000; Period costs $7,500; Applied MOH $2,000. Total job cost?
$9,000
Beg. RM $10K; RM purchases $40k; End RM $8K; Indirect materials $2k. What is the DM used?
$40k
What is break-even point?
The level of sales at which the company's profit equals 0. Revenues= total costs.
DM $30K, DL $20K, MOH $25K, advertising $5K. What are the total product costs?
$75K
Est. MOH= $240,000; Est. DL hrs= 20,000; Actual DL hrs= 6,000. Applied MOH?
$72,000
Job B: DM $8K; DL $5K; POHR $20/machine hour; 300 machine hours; 200 direct labor hours. Find total job cost.
$19,000
Beg WIP $10K; Total Manufacturing costs $80k; End WIP $15K. COGM?
$75K
What is the formula for BE point in units?
FC / CM
DM $40K, DL $30K, MOH $50K. Find prime cost AND conversion cost.
$70K; $80K
Applied MOH $125K; Actual MOH $140K. Over/ under? Amount? COGS increase or decrease?
$15K under; COGS increase
Job C: DM $12K; DL $8K; POHR $25/direct labor hour, 400 direct labor hours; 200 machine hours; 500 units. Find total job cost and unit cost.
$30k; $60/unit
Beg FG $20K; COGM $95K; End FG $15K. Find COGS unadjusted.
$100K
What is margin of safety?
The excess of budgeted or actual sales dollars over the break-even sales dollars. Your cushion or how far you are above BE.