BUS202 Final - Calculations

Material Price Variance (MPV)

(AQ x AP) - (AQ x SP)

(AAAS)

Labor Price Variance (LPV)

(AH x AR) - (AH x SR)

Direct Labor Variance/Total Labor Variance

(AH x AR) - (SH x SR)

Material Quantity Variance

(AQ x SP) - (SQ x SP)

(ASSS)

Total Material Variance

(AQ x AP) - (SQ x SP)

Direct Labor Quantity Variance

(AH x SR) - (SH x SR)

Net Present Value

PV of Net Cash Flows - Capital Investment

Change Since Base Period (%)

(Current Year Amount - Base Year Amount) / Base Year Amount

Total Standard Cost

DM cost + DL cost + MO cost

Cash Flows Provided by Operating Activites

Net Income (+ or -) Change in A/R (+ or -) Change in A/P + Depreciation + Expenses

-Increase in A/R = Subtract

-Decrease in A/R= Add

-Increase in A/P = Add

-Decrease in A/P = Subtract

Internal Rate of Return

Capital Investment / Net Annual Cash Flow

Profitability Index

PV of Net Cash Flows / Initial Investment

Annual Rate of Return

Expected Annual Net Income / Average Investment

Cash Payback Period

Cost of Capital Investment / Net Annual Cash Flow