Formulas to KNOW for Final ExamChapter 3 – Job CostingPOHR = Total Estimated Overhead / Total Estimated Allocation Base Allocate Overhead = POHR x Actual Amount of Allocation Base Over or Under Allocated Overhead: Actual MOH – Allocated MOHChapter 6 – Cost BehaviorTotal Cost Equation:y = vx + fTotal Cost = (VC per unit x Number of Units) + Fixed CostContribution Margin Income Statement: Sales- Variable ExpensesContribution Margin- Fixed ExpensesOperating IncomeChapter 7 – CVPContribution Margin (CM) = Sales – Variable CostsCM per unit = SP – VC per unitCM Ratio = CM (can use total or per unit amounts) Sales Breakeven and Target Profit:At breakeven , Operating Income = 0Equation method:Operating Income = SP (x) – VC (x) – FCShortcut Methods - Breakeven and target profit in:Units = Fixed Costs + Operating IncomeCM per unitSales Dollars = Fixed Costs + Operating Income CM ratioOperating Leverage:Operating Leverage Factor = Total CMOperating Income Operating leverage factor x % increase or decrease in SALES = % increase or decrease in Operating IncomeMargin of Safety:Margin of Safety in units or dollars = Budgeted or Actual Sales – Breakeven SalesMargin of Safety Percent = M of S (units or $) Budgeted or Actual Sales (units or dollars)Chapter 12 – Capital Investment Decisions and the Time Value of MoneyPayback Period (if equal cash inflows) = Investment / Annuity Amount Using FV and PV tables: FV of lump sum amount: FV = P x (FV of $1 i, n) FV of annuity: FV = P x (FVA i, n) where P is the Annuity amount PV of future lump sum: PV = P x (PV of $1 i, n) PV of annuity: PV = P x (PVA i, n) where P is the Annuity amountInternal Rate of Return: PVA factor = Investment / Annuity Amount; look up factor on PVA table for rateChapter 10- Performance EvaluationVolume Variance = Master Budget – Flexible BudgetFlexible Budget Variance = Flexible Budget – Actual ResultsChapter – Standard CostsThese are the ONLY formulas that will be provided on the exam:Material Price Variance = [AP – SP] x AQpMaterial Quantity Variance = [AQu – SQ] x SPDirect Labor Rate Variance = [AR – SR] x AQDirect Labor Efficiency Variance = [AQ – SQ] x SR(Remember that SQ means standard quantity allowed for the actual