|
OVERHEAD COSTING FORMULAS |
|
|
Predetermined absorption rate |
estimated or budgeted overhead for the period estimated or budgeted units of base for the period |
|
Direct material cost % rate |
budgeted overhead x 100 budgeted direct material costs |
|
Direct labor cost % rate |
budgeted overhead x 100 budgeted direct labor cost |
|
Prime cost % rate |
budgeted overhead X 100 prime cost |
|
Direct labor hour rate |
budgeted overhead budgeted direct labor hours |
|
Machine hour rate |
budgeted overhead budgeted machine hours |
|
Cost unit rate |
budgeted overhead budgeted output |
|
LABOR COSTING FORMULAS |
|
|
Gross pay |
Hours worked x rate per hour or number of units produced x rate per unit |
|
Halsey scheme |
50% of time saved x rate per hour |
|
Halsey Weir scheme |
1/3 of time saved x rate per hour |
|
Rowan scheme |
(time taken/time allowed x time saved) x rate per hour |
|
Time saved |
time allowed – time taken |
|
Labor turnover |
Avg no of employees leaving who have to be replaced  x 100 average number employed |
|
FORMULAS USED IN STANDARD COSTING |
|
|
Material cost variance |
Standard material cost less actual material cost |
|
Material price variance |
(standard price less actual price) x actual quantity purchased or used |
|
Material usage variance |
(standard quantity for actual output less actual quantity) x standard price |
|
Material mix variance |
(actual mix less standard mix ) x standard price |
|
Material yield variance |
(standard yield less actual yield) x standard cost |
|
Labor cost variance |
Standard wage cost less actual wage cost |
|
Labor rate variance |
(standard rate less actual rate ) x actual hours |
|
Labor efficiency variance |
(standard hours for actual output less actual hours worked) x standard rate |
|
Idle time variance |
Idle time x standard rate |
|
Variable production cost variance |
Standard variable overhead less actual variable overhead |
|
Variable overhead expenditure variance |
(standard overhead rate less actual overhead rate) x actual hours |
|
Fixed overhead cost variance |
Overhead absorbed less overhead incurred |
|
Fixed overhead expenditure variance |
(budgeted fixed overhead less actual fixed overhead) |
|
Fixed overhead volume variance |
(budgeted volume-actual volume) x standard absorption rate |
|
Fixed overhead capacity variance |
(budgeted hours-actual hours) x standard absorption rate |
|
Fixed overhead productivity variance |
(standard hours for actual output-actual hours worked) x standard absorption rate |
|
Sales value variance |
(budgeted quantity x standard selling price) less (actual quantity x actual selling price) |
|
Sales price variance |
(standard selling price-actual selling price) x actual quantity sold |
|
Sales volume variance |
(budgeted quantity-actual quantity) x standard selling price or standard profit or standard contribution |
|
Sales margin variance |
(budgeted quantity x standard profit)- (actual quantity x actual profit) |
|
Sales contribution variance |
(budgeted quantity x standard contribution)-(actual quantity x actual contribution) |
|
Sales allowance variance |
(budgeted allowance-actual allowance) x actual quantity sold |
|
Sales mix variance |
(standard mix-actual mix) x standard selling price or standard profit or standard contribution |
|
Sales quantity variance |
(budgeted quantity-actual quantity in standard mix) x standard price or standard profit or standard contribution |
CAclubindia
