ACC 202 Exam 2 Formulas - notes for lectures. ice and ica solutions notes for lectures. ice and ica solutions PDF

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notes for lectures. ice and ica solutions notes for lectures. ice and ica solutions notes for lectures. ice and ica solutions...

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Exam 2 Formulas Contribution Margin (CM)= Sales- Variable Costs (VC)

Unit CM= Unit Sales- Unit VC

Contribution Margin Ratio (CMR)=

CM Sales

Margin of Safety (MS)= Total Sales- BE Sales or Total Units - BE Units

Degree of Operating Leverage (DOL)=

CM OI

%  in OI= %  in Sales x DOL

Profit= Unit CM x Q- Fixed Expenses Q= BEP

Profit= CM Ratio x Sales -Fixed Expenses

Breakeven Point (BEP)- Operating Income=0

Previous Chapter Formulas: POHR=

Est OH Est Activity

Conversion Cost= DL +OH or Product Cost-DM

Prime Cost= DM + DL Contribution Margin Statement Sales −VC= CM − FC =OI Traditional Income Statement Sales −COGS =Gross Margin−S∧ A Expenses=OI

Budgets Sales Budget Budgeted Sales∈Units × Selling Price per Unit=Total Budgeted Sales Production Budget Sales+End Inv−Beg Inv =Required Production Finished Goods Budget End Inv ×Unit Product Cost=End Finished Goods Direct Materials Budget Production Needs+End Inv−Beg Inv=Materials ¿ be Purchased Direct Labor Budget Units of Production × DL per Unit × Hourly Wage Rate=DL Costs Manufacturing Overhead Budget Budgeted DLH × Variable OH Rate+¿ OH =Manufacturing OH Cash Disbursments Selling Administrative Expense Budget Budgeted Sales× Variable S∧ A Rate +¿ S∧ A Expenses=S∧ A Expenses Cash Budget Beg Cash+Cash Collections−Cash Disbursements=End Cash...