pev formula???
renae
Registered Posts: 76 Regular contributor ⭐
Hi guys,
Ive read in prev threads the formula AQ x (SPAP) for the price variances, what is the formula for the usage??
If I had half a brain cell left I could prob work it out........but not any more :blushing:
Ive read in prev threads the formula AQ x (SPAP) for the price variances, what is the formula for the usage??
If I had half a brain cell left I could prob work it out........but not any more :blushing:
0
Comments

SP x SU  AU
i think:confused1:
v0 
No :(
Looking at dec 08 paper, b, direct material (glass) usage variance.
the answer is nil (worth it) but using that formula I get 6,000! eek
Not sure if there even is one, or is it SU / bu x au?0 
I don't use formulas to remeber these but:
Should have Used (at Standard Price)  Actually Used (at Standard Price),
if thats any help0 
:001_smile: big help ta0

as I said in another post...
My book didn't teach any formula...was always shows this way instead:
MATERIAL PRICE VARIANCE
standard: £5 x 200kg= £1000
actual: £6 x 200kg = £1200
variance: £200 adverse
since I started to use the formulas from the past paper and various comments here, I got confused, because using (SPAP) x AQ I don't see quite clearly what's I'm calculating and most of the time I was taking the wrong amount!!
So I now prefer to get back to my own original way, even it's a bit longer, at least it's clear what I'm doing0 
I'm weird, for price variance I remember PAM.
Because the Price variance is Actual Materials (or litres, whatever) x the standand cost  what it did actually cost.0
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