Capicity & Efficiency Overhead Variances

A-VicA-Vic Expertise GuaranteedRegistered Posts: 6,970
Struggling to understand these and keep getting them mixed up any help would be great :)

Comments

  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    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-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    3 weeks and still mixing them up :(
  • jow774jow774 Trusted Regular Registered Posts: 465
    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-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    O thats fab thanks jow :)
  • taskeytaskey Font Of All Knowledge Registered Posts: 1,800
    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
  • jow774jow774 Trusted Regular Registered Posts: 465
    I hope I passed, lol. Wont know until 16th, oooh very scary, lol.
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    Hey anything more for mac would be great please post away :)
  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    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
    Sandy
    [email protected]
    www.sandyhood.com
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    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 :)
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