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[DOC File]Solutions for Homework ** Accounting 311 Cost ** Winter 2009
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A formula flexible budget is an equation expressed as follows: total cost equals fixed cost plus the product of the activity measure and the variable cost per unit of activity. The formula flexible budget allows for any level of activity, rather than only the activity levels for the various columns used in the columnar flexible budget.
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[DOC File]Student lecture notes - Pearson Education
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a. Using the high-low method, compute the variable cost per program and the total fixed cost per month. b. Using the least squares regression method, compute the variable cost per program and the total fixed cost per month. ANS: a. Variable cost per program: Change in costs $19,000 - $14,050 = $165 per program. Change in activity 75 - 45
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[DOC File]FINANCIAL MANAGEMENT-Question for CAIIB exam
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A cost-plus-incentive-fee contract is appropriate for noncommercial service or development and test programs when: A cost-reimbursement contract is necessary; The parties can negotiate a target cost and a fee adjustment formula that are likely to motivate the contractor to manage effectively.
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[DOC File]Chapter 7: Net Present Value and Capital Budgeting
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Calculation Formula Standard cost of materials (SC) minus actual cost of materials (AC) This may be shown in more detail as: ... Calculation of variable overhead cost variance. The standard allowance of direct labour time is 10,000 standard hours (SH). The standard variable overhead cost rate set is £2 per direct labour hour.
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[DOC File]ERCOT's Verifiable Cost Manual
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Actual variable cost per unit: 515,000 ÷ 130,000 = $3.96. Budgeted variable cost per unit: 240,000 ÷ 120,000 = $2.00. 3. A zero total static-budget variance may be due to offsetting total flexible-budget and total sales-volume variances. In this case, these two variances exactly offset each other: Total flexible-budget variance $15,000 ...
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[DOC File]CHAPTER 17
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The PV of the variable costs is also calculated using the five-year growing annuity formula. Pre-tax variable costs in year 1 are found by multiplying the variable cost ($0.2625) by the number of units (1,000,000). The cash flows are growing at the nominal rate of 0.071 and are discounted at 0.20.
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[DOC File]Standard Costing and Variance Analysis Formulas:
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3. Startup Cost will equal the sum of the Startup O&M cost plus the Startup Fuel Cost. Variable O&M Rate Calculation. 1. Variable O&M for the start costs portion shall be calculated by using the Startup Cost calculated as described above, amortized across the expected minimum online time multiplied by 75% of the HSL. 2.
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Variable Costing Formula (Examples) | How to Calculate Variable Co…
Actual factory overhead $11,000 Budgeted allowance based on standard hours allowed: Fixed expenses budgeted $4,500 Variable expenses (4,500 standard hours allowed × $1.50 variable overhead rate) $6,750 ----- $11,250 ----- Favorable controllable variance $ (250) fav.
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[DOC File]Chapter 3—Predetermined Overhead Rates, Flexible Budgets ...
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Variable costs = $15 per calculator. Fixed costs = $900,000 per year Depreciation = (Initial Investment / Economic Life) = ($600,000 / 5) = $120,000 per year. Divide the after-tax sum of the depreciation expense and the fixed costs by the calculator’s after-tax contribution margin (selling price, x, minus variable cost).
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Variable cost calculation formula