COMM_294_Midterm_Study_Sheet

COMM_294_Midterm_Study_Sheet - COMM 294 Managerial...

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COMM 294 Managerial Accounting Winter 2009 Midterm Notes Chapter 3: Job Order Costing Job order production: - Production of a variety of products or jobs that are usually quite distinct from each other Process production: - Mass production of large quantities of similar or homogeneous Products Departmental rates v. Plant-wide rates - e.g. overhead is applied on the basis of direct labour hours (DLH) in manufacturing and machine hours (MH) in finishing Departmental rate = estimated overhead cost for a department Specified OH driver (i.e. DLH or MH) Applied overhead = OH Rate x actual hours (either DLH or MH depending on above) Over/under Applied OH = Actual overhead – Applied overhead Plant-wide rate = Total estimated overhead cost (entire plant) Specified OH driver Chapter 5: Cost Behaviour High-Low method Variable cost per unit = highest total cost – lowest cost High cost driver – low cost driver Fixed costs = total costs – variable costs **NOTE** beware of outliers and ensure you are comparing highest and lowest cost
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This note was uploaded on 08/05/2011 for the course COMM 294 taught by Professor Aziz during the Winter '09 term at The University of British Columbia.

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COMM_294_Midterm_Study_Sheet - COMM 294 Managerial...

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