PEV - help with variances, please!

System

Anyone have any tips for remembering the variances?

I've put them into a table with their definitions, but just keep glazing over...how hard can it be to learn half a page of text?

Thank you!
8)

System

Re:PEV - help with variances, please!

If you let me have your email address I'll send you the guides I've got. But I won't know how well they worked until the 15th!
Jackie

System

Re:PEV - help with variances, please!

Taken from a previous thread :-

Material price variance is std price - actual price x actual amount purchased

Material usage variance is std usage for actual production - actual production x std price

Labour rate variance std rate - actual rate x actual hours worked

Labour efficiency variance is std hours - actual hours x std labour rate

Fixed overhead expenditure is budgeted overheads - actual overheads

The following variances are dependant on what they are based on - usually labour hours, but could be machine hours.

Fixed overheads volume variance is Std hours - budgeted hours x std absorption rate

Fixed overheads capacity variance is- Actual hours - budgeted hours x asbs rate

Fixed overheads efficiency variance is- Std hours - actual hours x abs rate.

As a post script I found a useful way to learn the sequences and then with practise understand the way that they are calculated:- PURE ASAS

P -(price) std price - actual price x Actual purchases
U - (usage) std usage - actual usage x Std price of materials
R - (labour rate) std rate - actual rate x Actual hours worked
E - (labour efficiency) std hours - Actual hours x Std rate

The help for the fixed overheads is :-

Volume variance - SBV- Silly boring variances
Capacity variances - ABC- the alphabet
Efficiency variance - SAE - Stamped addressed envelope

Hope this helps.

Regards

Dean

System

Re:PEV - help with variances, please!

Thanks - my address is:

baggy.books@virgin.net