Im looking to understand Variances & Performance Indicators!!

Ashley

:confused1:
Im wondering if anyone can help me?? I am 7 months through technician level and I am a very confussed little person!! I cant get to grips with overhead variances and all the written info to do with performance indicators? Was wondering if anybody out there can offer me a bit of advice on how to get my head around understanding what it is I am actually doing???

sebastianforbes

i'm having exactly the same problem.

repetition of questions... and repetition of questions !!!

tattookitten

OMG me too!
My tutor went over it really quickly and I was like whoa wait what?! So I've started making myself flash cards for the whole A x A, A x S etc layout and done one for material, labour and fixed o/h, I'm thinking that practising it will help.

SandyHood

Here is a reply I sent on the old forum
If production is lower than budget

There will always be an adverse f o volume variance

There are more than one way to work out the value, one way is overhead absorbed per unit x difference between budgeted output and actual output.

If hours worked are lower than budgeted total hours

There will always be an adverse f o capacity variance

one way to work out the value is overhead absorbed per hour x difference between budgeted hours and actual hours.


If the standard hours (units produced x standard hours per unit) are lower than the actual hours

There will always be a favourable f o efficiency variance


for more go to http://www.aat.org.uk/forums/showthread.php?t=15299