MARGINAL COSTING FORMULAS1) P/V RATIO= CONTRIBUTION / SALES X 100
· CONTRIBUTION= SALES – VARIABLE COST
FIXED COST + PROFIT
· SALES= FIXED COST + VARIABLE COST+ PROFIT
2) P/V RATIO= (FIXED COST + PROFIT)/ SALES X 100
· FIXED COST= TOTAL COST – VARIABLE COST
· PROFIT=MARGINE OF SAFTY X P/V RATIO
3) P/V RATIO= ( CHANGE IN PROFIT / CHANGE IN SALES ) X 100
4) BREAK EVEN POINT (B.E.P)= ( FIXED COST X TOTAL SALES ) / ( TOTAL SALES – VARIABLE COST)
5) B.E.P= FIXED COST / P/V RATIO
· FIXED COST= (SALES X P/V RATIO) – PROFIT(IF GIVEN)
6) B.E.P(IN UNITS) = FIXED COST / CONTRIBUTION PER UNIT
· CONTRIBUTION= SELLING PRICE PER UNIT – VARIABLE COST PER UNIT
7) B.E.P( IN VALUE ) = B.E.P UNITS X SELLING PRICE
8) NET PROFIT FROM SALES (X)
· PROFIT = (SALES X P/V RATIO ) – FIXED COST
9) SALES REQUIRED TO EARN A PROFIT (X) DESIRED PROFIT
· SALES = (FIXED COST + (X) DESIRED PROFIT) / P/V RATIO
10) MARGINE OF SAFTY WHEN PROFIT IS (X)
· M.O.S = PROFIT / P/V RATIO
i. PROFIT= SALES X P/V RATIO – FIXED EXPENCES
· M.O.S = ACTUAL SALES – B.E.P SALES
11) SALES – VARIABLE COST = FIXED COST + PROFIT
12) FIXED COST = TOTAL COST – VARIABLE COST
13) CONTRIBUTION = FIXED COST + PROFIT
14) CONTRIBUTION = SALES – VARIABLE COST
15) PROFIT = CONTRIBUTION – FIXED COST
16) FIXED COST + PROFIT = SALES – VARIABLE COST
17) MARGINE OF SAFTY = TOTAL SALES – B.E.P SALES
18) FIXED COST = B.E.P X P/V RATIO
19) PROFIT = M.O.S X P/V RATIO
STANDARD COSTING FORMULAS
1. MATERIAL:
SQ= STANDARD QUANTITY
SP= STANDARD PRICE
AQ=ACTUAL QUANTITY
AP= ACTUAL PRICE
§ MATERIAL COST VARIANCE
MCV= (SQ X SP) – (AQ X AP)
§ MATERIAL PRICE VARIENCE
MPV= AQ (SP – AP)
§ MATERIAL USAGE (OR) QUANTITY VARIANCE
MUV= SP (SQ – AQ)
§ MATERIAL MIX VARIANCE
MMV= SP (RQ – AQ)
RQ=ACTUAL TOTAL QUANTITY / STANDARD TOTAL QUANTITY X STANDARD QUANTITY OF PARTICULAR MATERIAL
§ MATERIAL YIELD VARIANCES
MYV = SYP ( AY – SY )
SYP= SQ X SP OF ALL MATERIALS GIVEN / STANDARD YIELD OUTPUT
STANDARD YIELD OUTPUT= TOTAL STANDARD QUANTITY – LOSS
ACTUAL YIELD OUTPUT= TOTAL ACTUAL QUANTITY – LOSS
AY= ACTUAL YIELD OUTPUT
SY= STANDARD YIELD OUTPUT
2. LABOUR :
SH= STANDARD HOURS
SR= STANDARD RATE
AH= ACTUAL HOURS
AR= ACTUAL RATE
§ LABOUR COST VARIANCES
LCV = (SH X SR) – (AH X AR)
§ LABOUR RATE VARIANCES
LRV= AH (SR – AR )
§ LABOUR TIME VARIANCES
LTV OR LEV = SR (SH – AHW)
AHW= ACTUAL HOUR WORKED (TOTAL TIME – IDEAL TIME)
§ IDEAL TIME VARIANCES
ITV = (AH – AHW ) X SR
§ LABOUR MIX VARIANCES
LMV = SR ( RH – AHW )
RH= ACTUAL TOTAL HOURS / STANDARD TOTAL HOURS X STANDARD HOUR OF PARTICULAR LABOUR
§ LABOUR YIELD VARIANCES
LYV = SYR (AY – RSY)
STANDARD YIELD RATE = TOTAL OF STANDARD HOUR X STANDARD RATE / REVISED STANDARD YIELD
ACTUAL YIELD =TOTAL ACTUAL HOUR – LOSS
REVISED STANDARD YIELD = TOTAL STANDARD HOUR – LOSS
OVERHEADS
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GIVEN BASIS
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TAKE ON THE FOLLOWINGS
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RENT
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AREA
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REPAIRS
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PLANT
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DEP
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PLANT
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LIGHT
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LIGHT POINT,AREA
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SUPERVISION
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WORKERS
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INSURANCE
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STOCK(IF SPECIFIED) OR PLANT
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EMPLOYES
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WAGES
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POWER
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H.P, ELECTRICITY (K.W.L) ,PLANT
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EMPLOYES CONTRIBUTION
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NO OF EMPLOYES
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CANTEEN EXP
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NO. OF EMPLOYEES
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ELECTRICITY
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LIGHT POINTS
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GENERAL O.H’S
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WAGES
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WELFARE
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NO. OF EMPLOYES
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