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What is the difference between Actual costing and normal costing?

actual costing uses actual indirect-cost rates normal costing uses budgeted indirect-cost rates


Formula for calculating cost of funds?

5.4%


Is there a formula for calculating labour cost?

Yes, there is a formula for calculating labor cost, which is: Labor Cost = Number of Hours Worked x Hourly Rate This formula can be adjusted depending on additional factors like overtime or bonuses.


Is indirect material is fixed cost or variable cost?

Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.


What is the formula for calculating liquor cost using the purchase method?

NO


What is the formula for calculating budget overrun?

Overrun = cost - budget


Normal costing system?

A costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and that allocates indirect costs based on the budgeted indirect-cost rates times the actual quantities of the cost-allocation bases.


Is indirect material fixed costs or variable costs?

Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.


What two cost elements are required to calculate an indirect cost rate?

Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.


What two costs elements are required to calculate an indirect cost rate?

Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.


What is the formula for calculating cost before tax is added?

If the relevant tax rate is t% and the after-tax cost is n, then the basic cost is n/(1 - t/100).


Is indirect labor a variable cost?

If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.