BMGT 221 Study Guide - Midterm Guide: Gross Margin, Opportunity Cost, Balanced Scorecard

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 221
• Professor: Gary Bulmash

Document Summary

Ex: units x pounds!!!! used in production & output are needed for equation. Predetermined oh rate [pohr] = est moh/est base. Overapplied or underapplied moh = difference between moh applied and actual moh. Target sales in dollars = fixed expenses + target net income. Target sales in units = fixed expenses + target net income. Beginning workip = direct materials + direct labor(rate*hrs) + manufacturing overhead applied to work in process(pohr*hrs) Difference btwn variable costing net income and absorption costing net income = change in inventory x fixed moh per unit. Favorable usually is negative in volume variance, make sure you incorporate that in the equation! Mpv = difference in price x actual quantity. Materials quantity variance = (actualq - standardq) standardp. Labor rate variance = ah (ar - sr) Lev = difference in hours x standard rate. Variable overhead efficiency variance = (ah - sh) sr. Fixed oh budget variance = actual fixed oh less budgeted fixed oh.