Capicity & Efficiency Overhead Variances

A-Vic

Struggling to understand these and keep getting them mixed up any help would be great

PGM

I haven't done them for a few years but they are tricky.

Best just to keep going over the same examples until you can do them without thinking.

A-Vic

3 weeks and still mixing them up

jow774

Someone sent me a great way to remember them when I was doing them, I remember them as

ABC (Actual hrs - Budget hrs) x OAR = Capacity

SAE (Standard hrs - Actual hrs) x OAR = Efficiency (SAE - Stamped Addressed Envelope)

(OAR = Overhead Absorption Rate)

I think thats right, Ive almost forgotten already, lol.

A-Vic

O thats fab thanks jow

taskey

jow774 wrote: »

Someone sent me a great way to remember them when I was doing them, I remember them as

ABC (Actual hrs - Budget hrs) x OAR = Capacity

SAE (Standard hrs - Actual hrs) x OAR = Efficiency (SAE - Stamped Addressed Envelope)

(OAR = Overhead Absorption Rate)

I think thats right, Ive almost forgotten already, lol.

that is exactly how i remembered them and i passed

jow774

I hope I passed, lol. Wont know until 16th, oooh very scary, lol.

A-Vic

Hey anything more for mac would be great please post away

SandyHood

I recall an answer I wrote where I didn't refer to formulae
I will have a look over the weekend, but you may find it (or them) on the search

A-Vic

SandyHood wrote: »

I recall an answer I wrote where I didn't refer to formulae
I will have a look over the weekend, but you may find it (or them) on the search

Thanks Sandy