Managerial Accounting Chapters Cost Distribution Sheet 1+2

The adjustment of the financial accounting expenses according to operational and objective criteria results in cost types.

Cost centers are only debited with overhead.

Revenue is allocated to cost centers.

Changes to the inventory occur in the cost unit accounting section.

Indirect cost centers (Vorkostenstelle) render their service to cost centers.

The use of an overhead rate is necessary to allocate cost types to cost units.

The rates to calculate individual orders are derived from the total calculation.

An increase of inventory leads to higher costs in the cost centers.

Beginning work in process is not included in manufacturing costs.

A warehouse cost center amount of CHF 30’000.-- is allocated to the cost units A, B and C based on a percentage of direct material use. How much storage overhead does cost unit A incur when the use of direct materials in CHF is as follows: A 800’000.--, B 1’400’000.--, C 1’000’000.--

Individual order: Calculate the sales prize rounded to two decimals for a single tube. Data for an amount of 10'000 tubes is: direct labor rate per hour CHF 40.--, direct material cost CHF 40'000.--, direct labor hours 90, the predetermined overhead rate to allocate warehouse overhead costs is 10% of direct materials, the predetermined overhead rate for the production 1 cost center is 150% of direct labor, production 2 manufactures 1000 pieces per hour at CHF 500.-- overhead cost per hour, the selling & administrative predetermined overhead rate is 20 % of manufacturing cost, markup for net income 10% of total costs.

Formula for manufacturing costs:

Formula for cost of finished goods:

Formula for total cost (Selbstkosten).