# Good luck with finals everyone

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1. What are the Direct Material Variances?
• Total Material Variance (TMV):
• (AQ * AP) - (SQ - SP)

• Material Price Variance (MPV):
• (AQ*AP) - (AQ*SP)

• Material Quantity Variance (MQV):
• (AQ*SP) - (SQ*SP)
2. What are the Direct Labour Variances?
• Total Labour Variance (TLV):
• (AH * AR) - (SH - SH)

• Labour Price Variance (LRV):
• (AH*AR) - (AH*SR)

• Labour Quantity Variance (LQV):
• (AH*SR) - (SH*SR)
3. What are the Variable Overhead Variances
• 1) Variable Overhead Rate per Hour:

• Spending Variance:
• Incurred - (Direct Hours worked * VOH/Hour)

• Usage Variance:
• (Direct Hours worked * VOH/Hour) - (Produced * SR * VOH/Hour)

• Budget Variance:
• Spending + Usage
4. How to calculate total overhead variance?
Total Variable OH variance + Fixed OH spending Variance
5. How can we calculate Break-even?
In point:

• Fixed Costs/Contribution margin
• 1- (Variable cost/sales)

• In \$:
• FC + VC

• In units:
• Break Even Point/Per Unit Selling Price
• FC/Per unit CM
6. How do we calculate Unit Sales to attain target profit?
(Fixed Cost + Target Profit)/Unit CM
7. How do we calculate Contribution Margin?
1 - VC in %

Sales - VC

FC +Profit
8. How do we calculate Margin of Safety?
(Budgeted Sales - Break-Even sales)/Budgeted Sales
9. How does Incremental Analysis look like foo
• Total machine hours available
• Machine hours required for x
• Machine hours left
• Supply contract
• Balance remaining
• //used to top up 90% on tract
• Less: (10% * 250 * 4) for A20
• Balance remaining
• Number of MH per unit for A40