BADM*2030 Chapter Notes -Cost Driver, Deutsche Luft Hansa, Low-Density Lipoprotein
Document Summary
Actual quantity of inputs, at actual price (aq . Actual quantity of inputs, at standard price (aq . Standard quantity allowed for the output, at standard price (sq . Just looking at variable moh: - dlh is cost driver. Actual hours of input, at actual rate (ah . Actual hours of input, at (2) standard rate (ah . Standard hours allowed for the output, at standard rate (sh . Looking at rent: - dlh is cost driver. Pohr = estimated total rent / estimated total cost driver. = ,000 / (2 dlh/unit x 500 units) The budget amount is ,000 at all levels of activity. The amount applied is the amount of units produced, x standard dlh per unit x pohr. The pohr is calculated by taking the budgeted fixed. The budgeted activity level is often referred to as the denominator activity level. ,000 / (500 units x 2 dlh per unit) = per dlh.
