BMGT 221 Chapter Notes - Chapter 3: Finished Good, European Cooperation In Science And Technology, Maximum Capacity

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

Document Summary

Y = the estimated total manufacturing overhead cost a = the estimated total fixed manufacturing overhead cost. = the estimated variable manufacturing overhead cost per unit of the allocation base. Beginning inventory plus purchases gives you what"s available. Subtract the cost of ending inventory from the goods avaialbe and you get cost of goods sold. Manufacturing costs: direct materials plus direct labor plus manufacturing overhead applied is equal to the total manufacturing costs. Always adding beginning inventory and subtracting ending inventory common misunderstand- cash and income are not the same thing. Applied overhead= pohr times actual direct labor hours: this is that the end of the year when you have the real numbers. Macro level, for the entire year how much overhead was applied for everything. Actual overhead and applied overhead might be differently: applied smaller than actual overhead means under applied, applied larger than actual overhead means over applied, applied >actual, over, applied < actual, under.