ACCA F2: Formula Guide

Things you should remember before entering the exam hall for ACCA F2 or before you start practicing Past Exam Papers: This is some kinda acca f2 formula guide.


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Material
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1) Reorder Level=Maximum Usage * Maximum Lead Time


2)Minimum Stock Level=Reorder Level - (Average Usage * Average Lead Time)


3)Maximum Stock Level=Reorder Level + Reorder Quantity - (Minimum Usage * Minimum Lead Time)
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Variance
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4)Sales Margin Price Variance is the difference between a and b.

a. Actual Sales Qty x Actual Selling Price
b. Actual Sales Qty x Standard Selling Price


5)Sales Margin Volume Variance in Absorption Costing is the difference between a and b.

a. Actual Sales Qty x Standard Profit Margin
b. Standard Sales Qty x Standard Profit Margin



6)Sales Margin Volume Variance in Marginal Costing is the difference between a and b.

a. Actual Sales Qty x Standard Contribution
b. Standard Sales Qty x Standard Contribution


7)Material Price Variance is the difference between a and b.

a. Actual Qty Purchased x Actual Price
b. Actual Qty Purchased x Standard Price


8)Material Usage Variance is the difference between a and b.

a. Actual Qty Usage x Standard Price
b. Standard Usage for Actual Production x Standard Price


9)Labor Rate Variance is the difference between a and b.

a. Actual Hours Paid x Actual Rate
b. Actual Hours Paid x Standard Rate


10)Labor Efficiency Variance is the difference between a and b.

a. Actual Hours Worked x Standard Rate
b. Standard Hours for Actual Production x Standard Rate


11)Variable Overhead Expenditure Variance is the difference between a and b.

a. Actual Variable Overhead
b. Actual Hours Worked x VOAR


12)Variable Overhead Efficiency Variance is the difference between a and b.

a. Actual Hours Worked x VOAR
b. Standard Hours for Actual Production x VOAR


13)Fixed Overhead Expenditure Variance is the difference between a and b.

a. Actual Fixed Overhead
b. Budgeted Fixed Overhead


14)Fixed Overhead Capacity Variance is the difference between a and b.

a. Budgeted Fixed Overhead
b. Actual Hours Worked x FOAR


15)Fixed Overhead Efficiency Variance is the difference between a and b.

a. Actual Hours Worked x FOAR
b. Standard Hours for Actual Production x FOAR

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Labor
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16)Halsey's Scheme to calculate bonus.

Time Allowed - Time Taken
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2


17)Rowan's Scheme to calculate bonus.

Time Taken
----------------- x Time Saved x Time Rate
Time Allowed
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Cost-Volume-Profit Analysis
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18) C\S Ratio

Contribution per unit
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Selling price per unit


19) BEP(units)

Fixed Cost
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Contribution Per unit


20)BEP($)

Fixed Cost
-------------
C/S Ratio


21)MOS($)=Budgeted Revenue - BEP($)


22)MOS(units)=Budged Sales Units - BEP(units)


23)MOS(%)

Budgeted Sales - BEP Sales
--------------------------------- x 100
Budgeted Sales


24)Target Sales Units

Fixed Cost + Target Profit
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Contribution per unit
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