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
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 319 NEW! Qualifications 2022
 157 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 92 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 274 Tax
 136 Bookkeeping
 7.2K General accounting discussion
 201 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership