# HELP!!unit 8 variances and performance indicators

aurora
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Please someone help!

I am trying to learn all these formulas for the variances and ratios but not getting anywhere, I just end up using standard instead of actual, or things like that. I'm doing home study and just can't seem to get to learn by heart all formulas.

Has anyone got a trick on how to get around to learn and reminder for good all these formulas please?

Thank you,

Aurora

I am trying to learn all these formulas for the variances and ratios but not getting anywhere, I just end up using standard instead of actual, or things like that. I'm doing home study and just can't seem to get to learn by heart all formulas.

Has anyone got a trick on how to get around to learn and reminder for good all these formulas please?

Thank you,

Aurora

## Comments

38Registeredlearning varience formulas r v dificult but if u hav a look on these formulas theyr quite similar to each other.. i'm also tryin to find easy way to learn variences:confused1:

2,034Registered, ModeratorIf last month's material cost was £35,000 I want to know whether this was about right for what we produced, and about right for what we used.

So I look at the overall variance.

We made 7,000 units, each should use 3kgs of raw material and our standard cost per kg is £1.50.

We issued 20,000 kgs to production at a cost of £35,000

So our standard would expect us to use 21,000 kgs to make 7,000 units. These should cost £31,500.

So we had a total material cost variance of £3,500 (adverse)

We used 20,000 kgs to make the 7,000 units.

We would have expected to use 21,000 kgs

We actually used 20,000 kgs

So our usage was 1,000 kgs less than the standard

at £1.50 per kg this gives a

material usage variance of £1,500 favourableWe would expect that the 20,000 kgs we used would cost £1.50 per kg = £30,000

It actually cost £35,000

So our

material price variance is £5,000 adverseI have answered other similar questions:

Labour

http://www.aat.org.uk/forums/showthread.php?t=17483

Overheads

http://www.aat.org.uk/forums/showthread.php?t=17537

[email protected]

www.sandyhood.com

40Registered3Registered2,034Registered, Moderator[email protected]

www.sandyhood.com

6,970Registered1,325RegisteredWhat a fab idea, I can use that in hospital - I was thinking of getting an MP3. How do you do voice recordings onto one?

6,970Registeredits under the recordings tab if you have one then add

32RegisteredWhen I got to work, I wrote them all out again while the computer loads up in the morning.

At lunchtime, I wrote them all out again, TWICE.

Before, I went home, I wrote them all again.

Before I went to sleep each night, I wrote them out again, TWICE.

I did the above for 3 weeks before the exam and by the time the exams came I knew them all by heart.

Also, when doing questions and past papers, its really usefull to write out the formula and to understand what it means. You have a better understanding of what you are working out.

Just keep at it - It will all sink in