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Variable costing formula= (Raw material + Labour cost + Utilities (variable overhead)) ÷ Number of mobile covers produced = $0.30 per mobile case As per the contract pricing, the per unit price = $350,000 / 1,000,000 = $0.35 per mobile case
The formula used to calculate the variable cost is: Total variable cost = Total quantity of output x Variable cost per unit of output Also Read: What is the Average Fixed Cost? Where is it mostly used? In a business, the variable cost is mostly used and is an integral part while analysing the company’s break-even e break-even analysis is applied to scan the revenue or the unit that has to be sold to cover the total e formula to determine the break-even point is:
Average Variable Cost = (Total Variable Cost of Ball + Total Variable Cost of Plastic Boxes) / Total Number of Balls and Boxes Put the value in the above Average Variable Cost formula . Average Variable Cost = (8 * 10,000) + (5 * 15,000) / 10,000 + 15,000
The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output: 2 Total Variable Cost = Total Quantity of Output X Variable Cost Per Unit of Output...
The formula for total variable cost can be derived by adding direct labor cost, cost of raw material and variable manufacturing thematically, it is represented as, Total Variable Cost = Direct Labor Cost + Cost of Raw Material + Variable Manufacturing Overhead Examples of Total Variable Cost Formula (With Excel Template)
Variable manufacturing overhead of $80,000 Total = $305,000 / 1,000,000 units produced = $0.305 variable cost per case Cost to produce special order of 1,000,000 phone cases = $0.305 x 1,000,000 = $305,erefore, there is a contribution margin of $400,000 – $305,000 = $95,000.
You can calculate total variable cost by multiplying the cost to make one unit of your product by the number of products you've is formula can be used to calculate the total variable cost for a particular period: Total output quantity x variable cost of each output unit = total variable cost
Calculating variable cost The total variable cost can be calculated using the following formula: Total Variable Cost = Total Output Quantity x Variable Cost Per Unit For example, a company receives an order for 5,000 hairdryers, with a total sales price of $5,000.