Formulas For Variances

Debs2809
Debs2809 Registered Posts: 42 ? ? ?
Hi can anyone help me please!!

I'm needing some help in remembering the costing variances for PEV. I'm no longer at college and I'm resitting for the 3rd time.

I don't mean to give excuses but in June 2008 I was heavily pregnant and failed section 2.

December 2008 I failed section 1 , still had baby brain...

So I'm hoping in June 2009 I can pass both sections at the same time.

I'd love to attend Sandy Hoods revision seminars but unfortunately I live in Dumfries, Scotland and not feasible to travel working fulltime and also having an 8 month old baby girl!!!

Look forward to hearing from you all.:001_rolleyes:

Comments

  • dobbieobby
    dobbieobby Registered Posts: 231 ? ? ?
    I'd really appreciate any advise people could give on remember the variances and formula's too please. There's so many I just panic every time I pick the book up to study!!
  • lork
    lork Registered Posts: 97 ? ? ?
    For the fixed overhead variances, I just used words to help me remember which variances were comparing what.

    For example: CAB for Capacity variance = the difference between Actual hours and Budgeted hours.

    EAS(T) for Efficency variance = the difference between Actual hours and Standard hours.

    VAB for Volume variance = the difference between Actual production and Budgeted production.

    Other than than, the only advice I can give is practice as many of the variance questions as you can, until (hopefully) it sticks. Good luck!
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    I hated these with a passion!

    I have thankfully forgotten most of it.

    What helped me was to really get my head round what each of the items was (for some reason, it took me a while to understand what Standard Hours/Production meant).

    Then just write down the formula and revise revise revise til you remember them.

    I wrote down all the formulae I needed in marker pen and blu-tacked them to the wall in the bathroom so whenever I was in there I had to sit and look at bl00dy variance formulae! :lol::lol::lol:

    It worked for me! :thumbup1:
  • Jan
    Jan Registered Posts: 654
    I hated these with a passion!

    I have thankfully forgotten most of it.

    Agree with you there! And..
    What helped me was to really get my head round what each of the items was (for some reason, it took me a while to understand what Standard Hours/Production meant).

    I seem to remember our tutor using a graph, which I understood better and would draw the graph in the working papers. If I can find my notes I'll explain further.
  • lizrochford
    lizrochford Registered Posts: 58 Regular contributor ⭐ ? ⭐
    thanks for this, quite helpful for me as I'm struggling with these going to keep writing them down until I memorize them.
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