Pev

spurschic1@yahoo.com
[email protected] Registered Posts: 94 💫 🐯 💫
Hiya all,

Is it me or do you find the PEV a nightmare! I'm a distance learner and unfortunately can't get to any revision courses. I've revised and revised and completed past papers but it still isn't going in. Any tips would be sooo greatfully appreciated! Got DFS and PCR to revise yet arrrggghhhhh!

Vicky

Comments

  • lewpylew
    lewpylew Registered Posts: 216 🎆 🐘 🎆
    Vicky,

    Is there anything in particular you need help on and then someone may be able to help x : )
  • spurschic1@yahoo.com
    [email protected] Registered Posts: 94 💫 🐯 💫
    Hiya,

    I'm just getting totally confused with all the formulae for labour and material usage, fixed ohead expen, vol etc

    Can't seem to figure them out!
  • SpursJayJay
    SpursJayJay Registered Posts: 1 New contributor 🐸
    Pev

    Hi

    I've heard that PEV is terrible to distance learn, I go to an evening class one day a week and we haven't even used the level 4 books because the techniques we've learned for variance analysis are not in there. The technique is good, but very hard to learn, but we've got to the point now where we can do the whole of section one of the exam in less than 15 minutes, I'm not sure if the technique I've learn is commonly found on the internet or if its unique to my centre, but if i do come across it on the internet I'll drop you a line :o).

    Sorry i couldn't have been more help (and its good to see someone else with a good taste in football ......)

    JJ
  • spurschic1@yahoo.com
    [email protected] Registered Posts: 94 💫 🐯 💫
    Thanks JJ, how did you guys learn the formule? The Osbourne book I'm using does it differently than the exams, I think that's why I am so confused!

    Great team eh, we're doing brilliantly at the mo, lets hope they keep it up!

    Vicky
  • bec1
    bec1 Registered Posts: 4 New contributor 🐸
    Im doing it distant learning from Osbourne books and i feel like giving up,i find the books pretty rubbish
  • Ampsie
    Ampsie Registered Posts: 145 🎆 🐘 🎆
    Hi,

    I'm so glad i'm not the only one feeling like that! I'm doing Mac but i am studying pev and pcr, long distance with Osborne books.

    I got so frustrated with the variances last night that i ripped my notes up and decided to give up!!!!!!!!!!!! One minute i feel like i understand things and then the next minute NOTHING makes sense!

    Feeling a bit more positive and determined today. Also my boss has let me have a study afternoon today so i am going to write them all out carefully and try to make it stick.

    I've booked onto Sandy Hoods revision day on the 22nd and i just hope that helps me make sense of it all.

    Ampsie
    (giving it another go!)
  • DaveIOW
    DaveIOW Registered Posts: 85 💫 🐯 💫
    Yeah I have had the same problem with variances, couldnt remember what figures went were. I sat down & wrote them out on cards & transferred it into my own words.

    I now ask myself what is the title of the variance asking me?

    Material Price Variance - its asking me to compare the price paid to the price I was supposed to pay. So in the variance, the variable will be the price.

    Standard price x actual quantity
    Actual price x actual quantity

    Material Usage Variance - its asking me to compare the quantity used to the quantity I as supposed to use. So in the variance the quantity will be the variable. The extra thing here is that it has to be in monetary terms so it must be standard price

    Standard quantity x actual usage x standard price
    Actual quantity x actual usage x standard price

    it works for all of them, the tricky one is the overhead volume as you also need to consider how the overheads were absorbed units or hours. If its hours then you can go onto efficiency & capacity
  • spurschic1@yahoo.com
    [email protected] Registered Posts: 94 💫 🐯 💫
    That's great thanks Dave.

    I also have a few printouts from my tutor so if anyone would like then send me an email and I'll forward them onto you. Hopefully it'll help us!

    Vicky
  • carlap
    carlap Registered Posts: 31 💫 🐯 💫
    I found that working them out this way is much easier

    Material Price
    Actual Materials x Actual Price
    Actual Materials x Standard Price

    Adverse if top line is bigger than the bottom Favourable otherwise

    Material Usage
    Bottom line of Material price is brought down for top line

    Actual Materials x Standard Price
    Standard Materials for actual sales** x Standard Price -

    Adverse if top line is bigger than the bottom Favourable otherwise

    **this figure is worked out by dividing the standard materials by standard units then x by actual units


    Fixed overheads are worked out similar if you need them I can explain them in that way too

    Hope these help
  • AK002
    AK002 Registered Posts: 2,492
    We got taught a different way which i personally think it much easier.

    Lets say for e.g that the standards for X are

    Material 1.2m @ £5 per metre = £6 per unit
    Labour 1.5 hours @ £3 = £4.50 per unit

    The actuals were, 240 units made, £1600 was spent on labour for 370 hours

    So you do..

    Labour expenditure variance,
    Did cost (what it cost to make the units) £1600
    Should cost (multiply the units actually made by the standard) - 240 x £4.50 = £1080
    Variance (1600 - 1080) = £520.

    This variance is Adverse as it did cost more than it should have...
  • lewpylew
    lewpylew Registered Posts: 216 🎆 🐘 🎆
    Just a quick reply as supposed to be working! I did my PEV in the summer and what got me through was really simplifying the formula.

    I learnt by taking it back to basics and thinking what it should have cost, what I should have used etc by what it did cost etc etc. It really did work and I past 1st time.

    Good luck x
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