# Accounting 102 Chapter 11

 The flashcards below were created by user acelaker on FreezingBlue Flashcards. Difference standards and budgets standard is a unit amount. A budget is a total amountbudget data not journal in cost accounting systems standard yes Standard direct materials cost per unit Std DM Price x Std DM Quantity Standard direct labor cost per unit Std DL Rate x Std DL Hours Manufacturing Overhead Budgeted Overhead Costs / Expected Standard Activity Index.ex: \$40,000 / 33,333 hours = 1.2 or 120%Predetermined rate is 120% of direct labor cost DLC=\$3.25 -->\$3.25 x 1.2 = \$3.9ALT METH: BUD OH \$132,000 Std Dir Hrs 26,400=5Std hours per unit 2 --> 5x2=10 Total Material Variance (AQ x AP) - (SQ x SP) Materals Price Variance AQ x (AP-SP) Materals Quantity Variance SP x (AQ-SQ) Causes of Materials Variances purchasing department = price paid for raw materialsmaterials quantity variance is in the production department Total Labor Variances (AH x AR) - (SH x SR) Labor Price Variance AH x (AR - SR) Labor Quanity Variance SR x (AH - SH) Causes of Labor Price Variances 1-pying wrkers diff wages than exp 2-misallocation of workersLabor quantity variances relate to the efficiency of workerstracedto the production department Total Overhead Variance Actual OH - OH Applied (based on std hours allowed) Causes of Manufacturing Overhead Variances over or underspending on overhead items = prod deptinefficient use of overhead = prod dept Balanced scorecard 1.Employs both financial and nonfinancial measures. (For example, ROI is a financial measure; employee turnover is a nonfinancial measure.) 2.Creates linkages so that high-level corporate goals can be communicated all the way down to the shop floor. 3. Provides measurable objectives for such nonfinancial measures as product quality, rather than vague statements such as “We would like to improve quality.” 4.Integrates all of the company's goals into a single performance measurement system, so that an inappropriate amount of weight will not be placed on any single goal. Authoracelaker ID149623 Card SetAccounting 102 Chapter 11 Descriptionchapter 11 Updated2012-04-25T06:15:13Z Show Answers