D101 WGU FORMULAS EXAM/18 QUESTIONS AND ANSWERS

D101 WGU FORMULAS EXAM/18
QUESTIONS AND ANSWERS
ACTIVITY RATE - -Activity Cost Pool Overhead / Total Cost Driver Activity

- INVENTORY FLOW - -BEGINNING UNITS
+ UNITS ADDED/PURCHASED
- ENDING NITS
= UNITS COMPLETED

- CVP EQUATION - -Sales Revenue - Variable Costs - Fixed Costs = Profit

- CONTRIBUTION MARGIN PER UNIT - -SELLING PRICE PER UNIT - VARIABLE
COST PER UNIT

- CONTRIBUTION MARGIN INCOME STATEMENT - -SALES REVENUE
- VARIABLE COSTS
= CONTRIBUTION MARGIN
- FIXED COSTS
= NET INCOME (LOSS)

- CONTRIBUTION MARGIN RATIO - -VARIABLE COSTS / SALES

- BREAKEVEN POINT IN UNITS - -FIXED COSTS / CONTRIBUTION MARGIN PER
UNIT

- BREAKEVEN POINT IN SALES DOLLARS - -FIXED COSTS / CONTRIBUTION
MARGIN RATIO

- TARGET INCOME - -(FIXED COSTS + TARGET INCOME) / CONTRIBUTION
MARGIN PER UNIT

- MARGIN OF SAFETY - -CURRENT LEVEL OF SALES
- BREAKEVEN LEVEL OF SALES

- OPERATING LEVERAGE - -CONTRIBUTION MARGIN / OPERATING INCOME

- MATERIALS PRICE VARIANCE - -STANDARD PRICE - ACTUAL PRICE
x ACTUAL QUANTITY
(SP-AP) X AQ

- MATERIALS QUANTITY VARIANCE - -(Standard Quantity Allowed - Actual
Quantity Used) × Standard Price
(SQ - AQ) X SP