I'm definately cracking up! PEV help needed please.

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Can someone please put me right. I am following the "PURE AS" for variances and the SBV, SAE & ABC for the fixed overheads. Can someone please confirm, as I always use:
Price(mat)= Std(Price) - Act(Price)x Act(kgs)
Usage(mat)= Std(Kgs) - Act(kgs) x Std(price)
Rate(lab) = Std(rate) - Act(rate) x Act(hrs)
Efficiency(lab) = Std(hrs) - Act(hrs) x Std(rate)

Std(hrs) - Bud(hrs) x absorption rate = Volume
Std(hrs) - Act(hrs) x absorption rate = Efficiency
Act(hrs) - Bud(hrs) x absorption rate = Capacity

I have just spent all day doing December 04 & December 05 practice exams and it has it the other way round eg Act - Std for variances and who knows what the June 05 exam says, it was a mixture??? I am just about to throw it all in the bin and give up. Have I got "study block" or something??
I need a few vodkas..............
Mandy

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:I'm definately cracking up! PEV help needed please.

    In my time on this unit I have met very few people who genuinely learned better by rote than understanding.

    Rather than focus on formulae, think about the meaning of the variance. I will be cooking sunday lunch very shortly; if I need 100grammes of meat per person and cook 1kg for 9 people I will have a usage variance that is adverse - exactly how much would be the 1 kg - 900g x the standard cost per gramme.

    You may suit rote learning a formulae, but for the majority of my students they have benefitted from visualising something they are familiar with and then seeing that virtually every exam scenario has something in common with their own experience.

    sandy.hood@chichester.ac.uk
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:I'm definately cracking up! PEV help needed please.

    Hi Sandy,

    thanks for your reply. Yes, I am trying to learn the formulae and yes, I am also learning to understand how the variance is made up and this is thanks to you as I scoured this site yesterday and seen your replies to others, (using the sunday dinner and cake making). I will be using my experiences from work, although I've started to talk out loud when I'm doing this, so the next task for me to learn is to keep it in my head! :roll:
    Cheers

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