Managerial Accounting: Chapter 8,9 Formulas not in Formula sheet explicitly

POHR

estimated overhead costs / estimated activity base

VOH cost variance

Actual Costs - (Actual Hours * Standard VOH Rate or POHR

FMOH efficiency variance

Budgeted FOH - (Standard hours allowed actual output * POHR)

Standard MH allowed in VOH efficiency variance

Standard MH per unit * actual units produced

VMOH efficiency variance

(AH - SH) * POHR

Sales price variance (ch.9)

(actual price - standard price) * actual quantity

sales quantity variance (ch.9)

(actual quantity - budgeted quantity) * standard price

ROI

Operating income / average total assets

Expanded ROI

Operating income / sales * sales / average assets

Profit margin ratio

operating income / sales

Asset turnover ratio

sales / average assets

Residual income

Operating income - (Average Assets * Required rate of returns)

Change in operating income (Ch.10)

Avoidable Fixed Costs Saved - CM Lost

Drop segment if: 

Avoidable Fixed Costs > Contribution Margin

Keep segment if:

Contribution Margin > Avoidable Fixed Costs

Target cost

Market price (revenue) - desired profit

Cost plus pricing (selling price)

Full product cost + desired profit

Operating Profit

Contribution Margin (Sales Revenue - Variable Costs) − Fixed Costs

Free cash flow (Ch. Appendix)

Net cash provided by operating activities - cash payments planned for investments in long term assets - cash dividends

Horizontal Analysis

change / base year * 100

Trend analysis

specific year / base year * 100

Vertical analysis (income)

income statement item / total sales * 100

Vertical analysis fornula (balance)

balance sheet item / total assets (liabilities) * 100