Mngrl Acc Exam 1 Formulas

• Allocated OH

  1. MOH rate = Budg OH/Budg cost allocation base
  2. Allocated OH = MOH rate x actual cost allocation base
• Proration

  1. Individual balances used/total balance = percentage
  2. Percentage x under/overallocated amt = allocation
  3. Allocation + individual balance = new balance
• Plantwide OH Rate

  Total est. OH/total est. base
• Contribution Margin (CM)

  (1) Total Revenue - Total VC

  (2) CM/unit x # of units sold
• Contribution Margin/unit

  Selling price - VC/unit
• Operating Income (OI)

  Contribution margin - FC
• Contribution Margin Ratio

  Contribution Margin/Revenue
• CVP Equation Method

  Revenue - VC - FC = OI
• CVP CM Method

  [(SP x Q) - (VC x Q)] - FC = OI
• Net Income

  OI x (1 - Tax Rate)
• Margin of Safety (MoS)

  Budgeted sales - BE sales
• Margin of Safety Ratio

  MoS/Budgeted sales
• Gross Margin

  Revenue - COGS