Accounting 212 Units 1,2,&3 Formulas

Bid Price

Total Manufacturing Cost x Mark-up %

Total Indirect Manufacturing Cost (Formula)

(Variable MOH (Total # of Units)) +(Fixed MOH ((Total # of Units)) = Total Indirect Manufacturing Cost

Total fixed portion of the sales representatives’ compensation (Formula)

Total Fixed Selling Exp. - Advertising Expenditure = Total fixed portion of the sales representatives’ compensation

Average fixed manufacturing cost per unit produced (Formula)

Fixed MOH (the initial units produced) / The New Units

Total fixed manufacturing overhead (Formula)

Fixed MOH (the initial units produced)

Product Cost Formula/Equation

Direct Materials + Direct Labor + MOH

Period Cost Formula

Selling cost + Administrative cost

POHR Formulas (2)

Est. total MOH cost for the coming period / est. number of units in cost driver

Estimated Total Manufacturing Overhead Costs / Estimated Total Allocation Base (Cost Driver)

a + (b)x / x or Y/X

y= a + b(x). What does each letter stand for?

Y = The estimated total manufacturing overhead cost.
a = The estimated total fixed manufacturing overhead cost.
b = The estimated variable manufacturing overhead cost per unit of the allocation base.
X = The estimated total amount of the allocation base.

Total Manufacturing Cost (Formula)

Direct materials + Direct labor + MOH =

MOH (Formula) = Direct labor x % of Direct labor costs.

Unit product cost (Formula)

Total manufacturing cost / number of units in job

MOH Applied (Formula)

Actual direct labor-hours x POHR

Estimated total MOH cost (Formula)

Est. fixed MOH + Est. Variable MOH

Estimated Variable MOH (Formula)

Variable MOH per machine hours x Machine hours

POHR (Formula)

Estimated total MOH / Estimated total machine hours

Total manufacturing Cost

Direct materials + Direct labor + Machine hours (MOH) + Direct labor hours (MOH)