Exam 2 Study Guide

Exam 2 Study Guide - Chapter 5 Plantwide: Plantwide OH Rate...

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Chapter 5 Plantwide : Plantwide OH Rate = Estimated Annual Overhead Estimated Annual Activity Plantwide OH Rate * Actual Activity Level = Applied OH Department : Departmental OH Rate = Estimated Departmental Annual Overhead Estimated Departmental Annual Activity Departmental OH Rate * Actual Departmental Activity Level = Applied OH in Department Watch for : 1. Correct activity driver (DL hrs. vs Machine hrs.) varies per department 2. Apply correct departmental OH rate to matching actual activity hrs. (Ex. Assembly Dept. driven by DL hrs . Assem. OH Rate X Actual DL hrs . in Assem.) Actual vs Applied OH : Actual > Applied ------> Under applied: ADD variance to COGS Actual = Applied ------> Same Actual < Applied ------> Over applied: SUBTRACT variance from COGS Actual OH Actual OH - Applied OH - Applied OH + Variance Under applied (Variance) Over applied Unit Product Cost : DM per unit +DL per unit +Applied OH per unit [OH Rate * Actual Hrs. per unit] = Unit Product Cost Unit Product Cost
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This note was uploaded on 01/18/2012 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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Exam 2 Study Guide - Chapter 5 Plantwide: Plantwide OH Rate...

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