ACTG 2300 Lecture 8: Day 8 Notes

• School: University of Denver
• Department: Accounting
• Course: ACTG 2300
• Professor: Patelli Lorenzo

Document Summary

Uvc = must be 60% so (. 6 * 50) = 30. Used to determine cost estimation in the future. How we assign indirect cost to the cost object. Def: something that causes a manufacturing overhead cost. For decision making: ex: do we drop a product or not. Going to be fixed no matter what. Units in inventory = units produced units sold (250 225 = 25) 25 * 240 = 6,000 total fmoh cost in inventory. Fmoh = 240: variable costing income statement. Cogs = 460 * 225 (how many were sold) = 103,500. S&a = 20 * 225 (given in 6-1) = 4,500. In absorption costing, the income is higher because we did not expense the. Non-traceable = indirect cost (cid:523)can"t be traced to which office(cid:524) Ex: ceo of the company (looks after both offices) Segment margin = difference between revenues of the segment and the variable&fixed expenses traceable to that segment.