Semester 1 Formulas

Question 1

Break even point in units

Answer 1

fixed costs / (selling price per unit - variable cost per unit)

Question 2

Break even point in sales

Answer 2

fixed costs / contribution margin ratio

Question 3

margin of safety (sales/rev)

Answer 3

actual sales/rev - break even sales/rev

Question 4

contribution margin

Answer 4

selling price per unit - variable cost per unit

Question 5

contribution margin ratio

Answer 5

contribution ratio / selling price per unit x100

Question 6

margin of safety percentage

Answer 6

(actual sales - break even sales)/actual sales x100

Question 7

price variance (material)

Answer 7

(actual price - standard price) x actual quantity

Question 8

usage variance (material)

Answer 8

(actual quantity - standard quantity) x standard price

Question 9

rate variance (labour)

Answer 9

(actual rate - standard rate) x actual hours

Question 10

labour
efficiency variance

Answer 10

(actual hours - standard hours) x standard rate

Question 11

contribution (costing)

Answer 11

sales - variable costs