account

                                        Variable Costing

                 Particulars                                 
sales revenue   (sppu * sales unit)                      
less: variable cost of sales
Direct material ( rate * prodn)
Direct labour (rate * prodn)
Variable cost of production
Add : Opening stock (rate * opening stock)
Variable cost of prodn available for sale
Less : Closing stock ( rate * closing )
Variable cost of good sale
Add : variable selling ( rate * sales)
Contribution margin
Less : fixed cost
fixed manufacturing overhead
fixed selling & adminstration overhead
Net profit before Tax


                             Absorbtion Costing
               
                    particular
Sales revenue  (sppu * sales units)
less : Cost of goods sold
Direct material ( rate * prodn)
Direct labour ( rate * prodn)
Variable manufactring overhead (rate * prodn )
Fixed manufactring overhead (sFor  * prodn)
Cost of production
Add : Opening stock ( rate * opening)
Cost of goods available for sale
Less : Closing stock (rate * closing)
Cost of goods sold unadjusted
Add/less : under applied / over applied
Cost of goods sold adjusted
Gross margin
Less : non mfg exp.
Variable selling (rate * sale )
Fixed selling & admin
Net profit before Tax

SFOR = Fixed mfg. overhead/normal capacity



Cost - Volume - Profit analysis


PV Ratio = Different in Profit / Different in SR

CMPU = SPPU - VCPU

CM = SR - VC

CM ratio / PV ratio =  CMPU/SPPU   , 1-VCPU/SPPU  ,  CM/SR

Cost Volume ratio = Different in cost / Different in sales revenue

FC = PV ratio * SR -Profit

BEP (units) = FC / CMPU

BEP (RS) = FC / CM ratio

Required sales for desired profit before tax (Rs)
       = FC+DP/CM ratio

Required sale for desired profit after tax ( Rs)
      =  FC+DPAT/1-TAX
          --------------------
               CM Ratio

Required sales for fixed peresntage of sale revenue
        =  FC / CMPU - PPU

Required sales for desired profit before tax (Unit)
     = FC + DP/ CMPU

Required sale for desired profit after tax(Unit)
       =  FC + DPAT/1-TAX
           ---------------------
              CMPU

  Margin of safty ( MOS )
    MOS = Total sales - BEP sales
    CMPU =  Profit / MOS units
   CM Ratio /PV ratio =  Profit / MOS in Rs.



                       Flexible Bubget

                     Formula Method

Details                       Cost Behavior            FC                    VCPU
Direct material                   VC                                                ***
Direct labour                      VC                                                ***
supervision                          SVC               ***                       ***
depreciation                        FC                  ***                      
Total                                                           ***                        ***

     BA = FC + VCPU * Level of activity


                     Table Method

Details                                           level of output
Variable cost                       *** units            *** units
Direct material                    ***                     ***
supervision                          ***                    ***
total variable cost  (a)

Fixed cost
supervision                           ***                     ***
Depreciation                         ***                     ***
total FC (b)
total cost ( a + b )


                             Flexible Budget
                              amount of profit *** units
        particulars                                                      amount
sales revenue                                                          ***
less: Variable cost of sales
Direct labour                                                        
Direct material cost
Direct expenses
Total variable cost    (a)
less: Fixed cost
Admin. cost
selling & distribution overhead
Total fixed cost     (b)
Total cost           (a +b)
net profit  ( sales revenue - total cost)



              Overhead Variance Working Table

SN.             QTY (hour)        RATE            F.MFG.O/h            Result
A                  standard            S F o/h             nil                         SQ * SOR
                                                 V o/h
B                   actual                S. V.              + F. MFG                 FMFG + SQ * SVOR
C                   actual                S.V.               +F.  MFG                 FMFG + AQ * SVOR
D                   actual                A.V                +F. MFG                 actual expenses incured

variance
1. capacity variance   = A-B
2. efficiency variance  = B-C
3. spending variance   = C-D

             Where, SOR = standard o/h rete
                          SQ   = standard Qty
                       SVOR = standard variable o/h rate