Capicity & Efficiency Overhead Variances

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A-Vic
A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
Struggling to understand these and keep getting them mixed up any help would be great :)

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  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    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
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    3 weeks and still mixing them up :(
  • jow774
    jow774 Registered Posts: 465 Dedicated contributor 🦉
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    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
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    O thats fab thanks jow :)
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    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
    jow774 Registered Posts: 465 Dedicated contributor 🦉
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    I hope I passed, lol. Wont know until 16th, oooh very scary, lol.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    Hey anything more for mac would be great please post away :)
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    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
    sandy@sandyhood.com
    www.sandyhood.com
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    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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