Pev & Pcr

Nicolaw1702

Hello Everbody,

Just a thread for all those sitting PEV & PCR in December (NEXT WEEK) :confused1:

Are there any tips anyone can give on remembering the Variances? It is mainly the Overhead one which is tricky!!

Any good tips on remembering these would be very welcome

Good Luck everybody

SAB1206

Yes, do you know the variances table, its really good to learn that (page 90 tutorial bk)

Nicolaw1702

Is that in the Kaplan book?

GreenTea

Is it possible for you to put the table on here ?
Only any help with these variances would be much appreciated !!
Thanks

mjw6150

This is how I remember it.

Price Variance

SP-AP x AU

Material Usage Variance

SU-AU x SP

Rate Variance

SR-AR x AE

Efficiency Variance

SE-AE x SR

Overhead Expenditure

Budgeted - Actual

Overhead Volume

(Actual Budgeted Hours x Absorption Rate) - (Budgeted Hours x Absorption Rate)

Overhead Capacity

(Actual Hours x Absorption Rate - Budgeted Hours x Absorption Rate)

Overhead Efficiency

(Actual Budgeted Hours x Absorption Rate) - (Actual Hours x Absorption Rate)