planning and control cycle decision making formulating long-and short-term plans (planning)...

Planning and Control Cycle

DecisionMaking

Formulating long-and short-term plans

(Planning)

Formulating long-and short-term plans

(Planning)

Measuringperformance (Controlling)

Measuringperformance (Controlling)

Implementing plans (Directing and

Motivating)

Implementing plans (Directing and

Motivating)

Comparing actualto planned

performance (Controlling)

Comparing actualto planned

performance (Controlling)

Begin

1-1

Exhibit 1-1

Comparison of Financial and Managerial Accounting

1-2

Exhibit 1-2

Balance Income Sheet Statement

AKA: Product Costs Inventoriable Costs

AKA: Period Costs

DM DL

MOH S,G & A

COSTS

Manufacturing Nonmanufacturing

Learning Objectives 2 – 5: Multiple cost definitions I’m going to present the different costs in a way that may help illustrate “the whole divided into parts.”

Direct Material: Material that becomes part of the final product & can be conveniently traced to it.

Direct Labor:

Labor costs that can be easily traced to the final product.

Manufacturing Overhead:

Manufacturing costs that cannot be easily & conveniently traced directly to specific units produced.

Selling: Sales Commission Rent on sales facility Free samples

Administrative:

Secretarial salaries Human Resources CEO & Executive salaries

Baseball Video Try to identify items as one of the three manufacturing (product) costs

Prime Costs: DM + DL Conversion Costs: DL + MOH

BE 1-2

Manufacturing Cost Flows

Selling andAdministrative

Period Costs

FinishedGoods

Cost of GoodsSold

Selling andAdministrative

ManufacturingOverhead

Work in Process

Direct Labor

Balance Sheet Costs Inventories

Income StatementExpensesMaterial Purchases Raw Materials

Direct Material DMIndirect Material DL

MOHApplied

Direct Labor IDMIndirect Labor IDL

Other

Overhead Applied to

WIP

Balance Sheet Income StatementWork in Process Finished Goods Cost of Goods SoldRaw Materials

Mfg. OverheadWages Payable

COGM COGS

Summary of Cost Flow

End of Chapter 1

1-6

Chapter 2

Job-Order Costing

Job-Order Costing—An Overview

Manufacturing Overhead


Job No. 1Job No. 1

Job No. 2Job No. 2

Job No. 3Job No. 3

Charge direct material and direct labor costs to each job as work is

performed.

Charge direct material and direct labor costs to each job as work is

performed.

Direct MaterialsDirect Materials

Direct LaborDirect Labor

2-8

Job-Order Costing—An OverviewManufacturing Manufacturing

Overhead, Overhead, including including indirect indirect

materialsmaterials and and indirect laborindirect labor, are , are allocated to jobs allocated to jobs

rather than rather than directly traced to directly traced to

each job.each job.

Manufacturing Manufacturing Overhead, Overhead,

including including indirect indirect materialsmaterials and and

indirect laborindirect labor, are , are allocated to jobs allocated to jobs

rather than rather than directly traced to directly traced to

each job.each job.

Direct MaterialsDirect Materials


Job No. 1Job No. 1

Job No. 2Job No. 2

Job No. 3Job No. 3Manufacturing Overhead


2-9

Manufacturing Overhead Application

POAR = $4.00 per DLH

$640,000

160,000 direct labor hours (DLH)POAR =

Estimated (Budgeted) total Manufacturing overhead cost

Estimated (Budgeted) total allocation base

POAR =

Overhead Applied During the PeriodApplied Overhead = POAR × Actual Direct Labor Hours

Applied Overhead = $4.00 per DLH × 170,000 DLH = $680,000

Q1. Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000

and estimated direct labor hours were 20,000.

What would be recorded as the cost of job WR53?

A) $200.

B) $350.

C) $380.

D) $730.

Defining Under- and Overapplied Overhead

Over/Under-applied overhead := The difference between the overhead cost applied to WIP and

the actual overhead costs.

Underapplied overhead :

Actual > Applied

Underapplied overhead :

Actual > Applied

OverappliedOverapplied overhead overhead::

Actual < AppliedActual < Applied

OverappliedOverapplied overhead overhead::

Actual < AppliedActual < Applied

2-13

Disposition of Under- or Overapplied Overhead

Mfg. OverheadActual

overhead costs

$650,000$30,000

overapplied

Overhead appliedto jobs

$680,000

Cost of Goods Sold

Unadjusted Balance

AdjustedBalance

$30,000

$30,000

2-14

ø

End of Chapter 2

2-15

Chapter 3Chapter 3

© The McGraw-Hill Companies, Inc., 2007McGraw-Hill /Irwin

Systems Design: Activity-Based Costing

Activity-Based Costing (ABC)

For each activity inisolation, this system works exactly

like the job-order costing systemdescribed in Chapter 2.

A POAR is computed for each activity (estimates) &

then applied based on the actual amount of activity.

A POAR is computed for each activity (estimates) &

then applied based on the actual amount of activity.

Hierarchy of Activities

Level Activities Activity MeasureUnit-level Processing units on machines Machine-hours

Processing units by hand Direct labor-hoursConsuming factory supplies Units produced

Batch-level Processing purchase orders Purchase orders processedProcessing production orders Production orders processedSetting up equipment Number of setupsHandling materials Pounds of material handled

Product-level Testing new products Hours of testing timeAdministering parts inventories Number of part typesDesigning products Hours of design time

Facility-level General factory administration Direct labor-hoursPlant building and grounds Direct labor-hours

Level Activities Activity MeasureUnit-level Processing units on machines Machine-hours

Processing units by hand Direct labor-hoursConsuming factory supplies Units produced

Batch-level Processing purchase orders Purchase orders processedProcessing production orders Production orders processedSetting up equipment Number of setupsHandling materials Pounds of material handled

Product-level Testing new products Hours of testing timeAdministering parts inventories Number of part typesDesigning products Hours of design time

Facility-level General factory administration Direct labor-hoursPlant building and grounds Direct labor-hours

Activity rates are determined as =

Estimated Total OH $ / Estimated Total Activity

Activity rates are determined as =

Estimated Total OH $ / Estimated Total Activity

Activity Cost Pool

Estimated Overhead

Cost

Total Expected Activity

Machine related 175,000$ ÷ 5,000 MHs = 35$ per MHPurchase orders 63,000 ÷ 700 orders = 90$ per orderMachine setups 92,000 ÷ 460 setups = 200$ per setupProduct testing 160,000 ÷ 200 tests = 800$ per testGeneral factory 300,000 ÷ 25,000 DLH = 12$ per DLH

790,000$

Activity RateActivity Cost Pool

Estimated Overhead

Cost

Total Expected Activity

Machine related 175,000$ ÷ 5,000 MHs = 35$ per MHPurchase orders 63,000 ÷ 700 orders = 90$ per orderMachine setups 92,000 ÷ 460 setups = 200$ per setupProduct testing 160,000 ÷ 200 tests = 800$ per testGeneral factory 300,000 ÷ 25,000 DLH = 12$ per DLH

790,000$

Activity Rate

3-19

Overhead is applied on the basis of actual Overhead is applied on the basis of actual activities during the year.activities during the year.

Overhead is applied on the basis of actual Overhead is applied on the basis of actual activities during the year.activities during the year.

Activity Cost PoolActivity

RateActual Activity

Applied Overhead

CostMachine related $35/MH × 4,600 MHs = 161,000$ Purchase orders $90/order × 800 orders = 72,000 Machine setups $200/setup × 500 setups = 100,000 Product testing $800/test × 190 tests = 152,000 General factory $12/DLH × 23,000 DLHs = 276,000 Total Overhead Applied 761,000$

Activity Cost PoolActivity

RateActual Activity

Applied Overhead

CostMachine related $35/MH × 4,600 MHs = 161,000$ Purchase orders $90/order × 800 orders = 72,000 Machine setups $200/setup × 500 setups = 100,000 Product testing $800/test × 190 tests = 152,000 General factory $12/DLH × 23,000 DLHs = 276,000 Total Overhead Applied 761,000$

Cost Flows in an ABC System

Note that the unit product cost of a CD unitNote that the unit product cost of a CD unitdecreased from $110 to $95.55 . . . . .decreased from $110 to $95.55 . . . . .

Note that the unit product cost of a CD unitNote that the unit product cost of a CD unitdecreased from $110 to $95.55 . . . . .decreased from $110 to $95.55 . . . . .

. . . . . while the unit cost of a DVD unit increased from . . . . . while the unit cost of a DVD unit increased from $150 to $207.80.$150 to $207.80.

. . . . . while the unit cost of a DVD unit increased from . . . . . while the unit cost of a DVD unit increased from $150 to $207.80.$150 to $207.80.

ABC vs. Traditional CostingComtek Example

DVD Unit CD Unit DVD Unit CD UnitDirect material 90.00$ 50.00$ 90.00$ 50.00$ Direct labor 20.00 20.00 20.00 20.00 Manufacturing overhead 97.80 25.55 40.00 40.00 Unit product cost 207.80$ 95.55$ 150.00$ 110.00$

Activity-Based Costing Direct-Labor CostingDVD Unit CD Unit DVD Unit CD Unit

Direct material 90.00$ 50.00$ 90.00$ 50.00$ Direct labor 20.00 20.00 20.00 20.00 Manufacturing overhead 97.80 25.55 40.00 40.00 Unit product cost 207.80$ 95.55$ 150.00$ 110.00$

Activity-Based Costing Direct-Labor Costing





When a company implements activity-based costing, overhead cost often shifts from high-volume to low-

volume products with a higher unit product cost resulting for the low-volume products.

When a company implements activity-based costing, overhead cost often shifts from high-volume to low-

volume products with a higher unit product cost resulting for the low-volume products.

Low-volume productLow-volume product

Shifting of Overhead Cost





ABC vs. Traditional Costing

The ABC system assigns $14.45 The ABC system assigns $14.45 less overhead than the traditional less overhead than the traditional

system to each CD player.system to each CD player.

The ABC system assigns $14.45 The ABC system assigns $14.45 less overhead than the traditional less overhead than the traditional

system to each CD player.system to each CD player.

ABC vs. Traditional Costing





The ABC system assigns $57.80 The ABC system assigns $57.80 more overhead than the traditional more overhead than the traditional

system to each DVD player.system to each DVD player.

The ABC system assigns $57.80 The ABC system assigns $57.80 more overhead than the traditional more overhead than the traditional

system to each DVD player.system to each DVD player.

End of Chapter 3

3-25

Chapter 4

Process Costing

FinishedGoods

FinishedGoods

Cost of GoodsSold

Cost of GoodsSold

Work inProcess

Direct Materials

Direct Materials




Flow of Materials, Labor, and Overhead Costs

FinishedGoods

FinishedGoods

Cost of GoodsSold

Cost of GoodsSold




ProcessingProcessingDepartmentDepartmentProcessingProcessingDepartmentDepartment

Costs are traced and Costs are traced and applied to departments applied to departments

in a process cost in a process cost system.system.

Costs are traced and Costs are traced and applied to departments applied to departments

in a process cost in a process cost system.system.

Direct Materials

Direct Materials

Flow of Materials, Labor, and Overhead Costs

Work in Process Department B

Work in ProcessDepartment A

•Direct Materials

•Direct Labor

•AppliedOverhead

•Direct Materials

•Direct Labor

•AppliedOverhead

Transferred to Dept. B

•Transferred from Dept. A

Assume Two Processing Departments:Partially Completed Units Transferred

Finished Goods Work in Process Department B

•Cost of Goods

Manufactured

•Direct Materials

•Direct Labor

•AppliedOverhead

•Transferred from Dept. A

•Cost of Goods

Manufactured

Transfer of Cost of Completed Units(in T-Account form)

Equivalent Units of ProductionEquivalent units are the product of the numberof partially completed units and the percentage

of completion of those units.

Equivalent units are the product of the numberof partially completed units and the percentage

of completion of those units.

We need to calculate equivalent units because a department usually has some partially completed

units in its beginning and ending inventory.

We need to calculate equivalent units because a department usually has some partially completed

units in its beginning and ending inventory.

Two half completed products are equivalent to one completed product.

Two half completed products are equivalent to one completed product.

So, 10,000 units 70% completeare equivalent to 7,000 complete units.

So, 10,000 units 70% completeare equivalent to 7,000 complete units.

+ = 1

Equivalent Units – The Basic Idea

Learning Objective 2

Compute the equivalentunits of production using theweighted-average method.

The weighted-average method . . .

• Makes no distinction between work done in prior or current periods.

• Blends together units and costs from prior and current periods.

The weighted-average method . . .

• Makes no distinction between work done in prior or current periods.

• Blends together units and costs from prior and current periods.

Characteristics of the Weighted Average Method

Direct labor costsmay be small

in comparison toother product

costs in processcosting systems.




DirectMaterials

Type of Product Cost

Dol

lar A

mou

nt

DirectLabor


Treatment of Direct Labor

Type of Product Cost

Dol

lar A

mou

nt

Conversion

Direct labor and manufacturing overhead may beDirect labor and manufacturing overhead may becombined into one product cost called combined into one product cost called conversionconversion..Direct labor and manufacturing overhead may beDirect labor and manufacturing overhead may be

combined into one product cost called combined into one product cost called conversionconversion..

DirectMaterials

Treatment of Direct Labor







1st - identify the physical units completed and transferred out.

2nd - identify the equivalent units of production in ending work in process with respect to materials (% Complete * Physical Units)

and adding this to the units from step one.

3rd - identify the equivalent units of production in ending Work in Process with respect to conversion (% Complete * Physical

Units) and adding this to the units from step one.

Weighted-Average – Equivalent Units

Equivalent units of production always equals: Units completed and transferred + Equivalent units remaining in Work in Process

Equivalent units of production always equals: Units completed and transferred + Equivalent units remaining in Work in Process

Materials Conversion

Units completed and transferredout of the Department in June 5,400 5,400

Work in Process, June 30:

900 units × 60% 540

900 units × 30% 270

Equivalent units of Production inthe Department during June 5,940 5,670

Weighted-Average Equivalent Units An Example

Cost perequivalent

unit

= Cost of beginningWIP

Cost added during the period

Equivalent units of production

+

Compute and Apply Costs

TotalCost Materials Conversion

Cost to be accounted for: Beginning WIP 10,039$ 6,119$ 3,920$

Cost added 199,751 118,621 81,130

Total cost 209,790$ 124,740$ 85,050$

Equivalent units 5,940 5,670


TotalCost Materials Conversion

Cost to be accounted for: Beginning WIP 10,039$ 6,119$ 3,920$

Cost added 199,751 118,621 81,130

Total cost 209,790$ 124,740$ 85,050$

Equivalent units 5,940 5,670

$124,740 ÷ 5,940 units = $21.00 $85,050 ÷ 5,670 units = $85,050 ÷ 5,670 units = $15.00$15.00

Cost per equivalent unit = $21.00 + $15.00 = $36.00Cost per equivalent unit = $21.00 + $15.00 = $36.00


End of Chapter 4

3-42

Chapter 3Chapter 3

© The McGraw-Hill Companies, Inc., 2007McGraw-Hill /Irwin

Cost Behavior:Analysis and Use

Chapter 5

Summary of Variable and Fixed Cost Behavior

Cost In Total Per Unit

Variable Total variable cost is Variable cost per unit remainsproportional to the activity the same over wide ranges

level within the relevant range. of activity.

Total fixed cost remains thesame even when the activity Fixed cost per unit goes

Fixed level changes within the down as activity level goes up. relevant range.

Types of Cost Behavior Patterns

Summary of Variable, Fixed, and Mixed Cost Behavior

Cost In Total Per Unit

Variable

Fixed

Mixed TC = FC + VC/activity * (Activity)

Learning ObjectiveLO3LO3

To analyze a mixed cost using the high-low method.

Quick Check

Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the fixed portion of sales salaries and commissions?a. $ 2,000b. $ 4,000 c. $10,000d. $12,000

Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the fixed portion of sales salaries and commissions?a. $ 2,000b. $ 4,000 c. $10,000d. $12,000

Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the fixed portion of sales salaries and commissions?

a. $ 2,000

b. $ 4,000

c. $10,000

d. $12,000

Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method, what is the fixed portion of sales salaries and commissions?

a. $ 2,000

b. $ 4,000

c. $10,000

d. $12,000

Quick Check

The Contribution Format

Used primarily forUsed primarily forexternal reporting.external reporting.

Used primarily byUsed primarily bymanagement.management.

Overview of Absorptionand Variable Costing

Direct Materials

Direct Labor

Variable Manufacturing Overhead

Fixed Manufacturing Overhead

Variable Selling and Administrative Expenses

Fixed Selling and Administrative Expenses

VariableCosting

AbsorptionCosting

ProductCosts

PeriodCosts

ProductCosts

PeriodCosts

DEFINITIONS CHANGE!!!

Summary of Key Insights

End of Chapter 5

&

End of Material For Midterm 1

Cost-Volume-Profit Relationships

Using the Contribution Margin I/S

Chapter 6

Key Assumptions of CVP AnalysisSelling price is constant.Selling price is constant.Costs are linear.Costs are linear.In multi-product companies, the sales In multi-product companies, the sales

mix is constant.mix is constant.In manufacturing companies, In manufacturing companies,

inventories do not change (units inventories do not change (units produced = units sold).produced = units sold).

Contribution Margin Method

The contribution margin method has two key equations.

Fixed expensesUnit contribution margin

=Break-even point

in units sold

Fixed expenses CM ratio

=Break-even point intotal sales dollars

The Contribution Margin Approach These methods can be used with target profit.

Fixed expenses + Target profit Unit contribution margin

=Unit sales to attain

the target profit

Fixed expenses + Target profit CM ratio

=Sales dollars to attain

the target profit

Margin of safety = Total sales - Break-even salesMargin of safety = Total sales - Break-even sales

Operating Leverage = Contribution Margin / NOIOperating Leverage = Contribution Margin / NOI

End of Chapter 6

Chapter 7

Profit Planning

AKA …BUDGETING

The Master Budget: An OverviewSales

budget

Budgetedincome

statement

Budgetedbalancesheet

Selling andadministrative

expense budget

Endinginventor

ybudget

Productionbudget

Cashbudget

Direct

laborbudg

et

Directmaterialsbudget

Manufacturingoverheadbudget

Start

• Budgets have “rules” that affect how each budget is calculated

• There are a few features unique to each budget

– Labor: guaranteed hours, overtime, etc.

– MOH: Total budgeted MOH, non-cash expenses, etc.

– Cash: Cash on hand, Interest expense & borrowing, etc.

Expected Cash Collections

• All sales are on account.

• Royal’s collection pattern is: 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible.

• The March 31 accounts receivable balance of $30,000 will be collected in full.

• All sales are on account.

• Royal’s collection pattern is: 70% collected in the month of sale, 25% collected in the month following sale, 5% uncollectible.

• The March 31 accounts receivable balance of $30,000 will be collected in full.

7-62

Expected Cash Collections7-63

The Production Budget7-64

The Cash Budget7-65

End of Chapter 7

7-66

Chapter 8

Flexible Budgets andPerformance Analysis

7-67

We want to explain the difference between the Budgeted and Actual Results – i.e., the Variances

8-68

We break the Total Variance up by inserting a Flexible budget.

We end up with a Performance Report showing Activity and Revenue and Spending Variances

8-69

End of Chapter 8

8-70

Chapter 9

Standard Costs

or

“How to look at the Spending Variances from Ch 8”

8-71

In a standard costing system, inventories are recorded using standard prices and standard quantities.

The differences between what is actually used and what is recorded at standard is found in the “Quantity” and “Price” variances.

8-72

Big Idea in Ch 9

Price and Quantity Variances:DM, DL, & VOH

(AQ × AP) – (AQ × SP) (AQ × SP) – (SQ × SP)

AQ = Actual Quantity SP = Standard Price AP = Actual Price SQ = Standard Quantity

Price Variance Quantity Variance

Actual Quantity Actual Quantity Standard Quantity* × × × Actual Price Standard Price Standard Price

* Standard Quantity allowed for Actual Production = (Std/unit * Units produced)

Inventories are recorded at standard cost.

Variances are recorded as follows: Favorable variances are credits, representing

savings in production costs. Unfavorable variances are debits, representing

excess production costs.

Variances closed out to cost of goods sold. Favorable variances decrease cost of goods sold. Unfavorable variances increase cost of goods sold.

Inventories are recorded at standard cost.

Variances are recorded as follows: Favorable variances are credits, representing

savings in production costs. Unfavorable variances are debits, representing

excess production costs.

Variances closed out to cost of goods sold. Favorable variances decrease cost of goods sold. Unfavorable variances increase cost of goods sold.

9-74

Budget variance

Fixed Overhead Budget VarianceActualFixed

Overhead

AppliedFixed

Overhead

BudgetedFixed

Overhead

Budgetvariance

Budgetedfixed

overhead

Actualfixed

overhead= –

9-75

Volumevariance

Fixed Overhead Volume Variance

Volumevariance

Fixed overheadapplied to

work in process

Budgetedfixed

overhead= –

ActualFixed

Overhead

AppliedFixed

Overhead

BudgetedFixed

Overhead

9-76

Reconciling Overhead Variances and Underapplied or Overapplied Overhead

In a standardcost system:

Unfavorable OH variances are equivalent

to underapplied overhead.

Favorable OH variances are equivalent

to overapplied overhead.

The sum of the overhead variancesequals the under- or overapplied

overhead cost for the period.

9-77

End of Chapter 9

&

Midterm 2 Material

8-78

Responsibility Centers:Cost, Profit, and Investments Centers

ResponsibilityCenter

ResponsibilityCenter

CostCenterCost

CenterProfit

CenterProfit

CenterInvestment

CenterInvestment

Center

Traceable costs arise because of the existence of a particular segment and would disappear over time if

the segment itself disappeared.

No computer No computer division means . . .division means . . .

No computerNo computerdivision manager.division manager.

Identifying Traceable Fixed Costs

Common costs arise because of the overall operation of the company and would not disappear

if any particular segment were eliminated.

No computer No computer division but . . .division but . . .

We still have aWe still have acompany president.company president.

Identifying Common Fixed Costs

ROI = ROI = Net operating incomeNet operating income

Average operating assets Average operating assets

Margin = Margin = Net operating incomeNet operating income

Sales Sales

ROI = ROI = Margin Margin Turnover Turnover

Return on Investment (ROI) Formula

Turnover = Turnover = SalesSalesAverage operating assets Average operating assets

There are three ways to increase ROI . . .There are three ways to increase ROI . . .

IncreaseIncreaseSalesSales

ReduceReduceExpensesExpenses ReduceReduce

AssetsAssets

Increasing ROI

Calculating Residual Income

Residual income

=Net

operating income

-Average

operating assets

Minimum

required rate of return

( )This computation differs from ROI.

ROI measures net operating income earned relative to the investment in average operating assets.

Residual income measures net operatingincome earned less the minimum required

return on average operating assets.

End of Chapter 10

8-85

Chapter 11

8-86

Cost Concepts for Decision Making

A relevant cost is a cost that differs between alternatives.

1

2

An avoidable cost can be eliminated (in wholeor in part) by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs

are irrelevant costs.

Two broad categories of costs are never relevant in any decision and include: Sunk costs.Future costs that do not differ between the alternatives.

An avoidable cost can be eliminated (in wholeor in part) by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs

are irrelevant costs.

Two broad categories of costs are never relevant in any decision and include: Sunk costs.Future costs that do not differ between the alternatives.

Identifying Relevant Costs

Chapter 11 Relevant Costs for Decision Making

Keep (Add) or Drop: Contribution Margin Lost vs. Costs Avoided.

If CM Lost > Cost Avoided, then Keep (Add)

Make or Buy: Costs avoided vs. Purchase price.

If Costs avoided > Purchase Price, then Buy

Special Order: Incremental Revenue vs. Incremental (variable) Costs.

If Incremental Revenue > Incremental Costs, Accept.

Notes: Capacity should be sufficient to accommodate the Special Order

Current Fixed Costs should be ignored

Constrained Resource: Maximize CM/unit of CONSTRAINT.

1. Find CM/unit of Constraint 2. Rank based on CM/unit of Constraint 3. Make as many units as demanded of the #1 product, then use the remaining constraint

to make as many units as demanded of the #2 product, and so on.

planning and control cycle decision making formulating long-and short-term plans (planning)...

Documents

overhead actual overhead

total overhead

period applied overhead

joborder costing slide

direct labor costs

overapplied overhead

poar actual direct labor

cost of job wr53