Variances MAC - Any tips on how to remember them all?

sorcha

There are so many different variances to know how to calculate - direct/ materials/price/usage/labour/rate/efficiency/overheads/capacity/volume...aaargh, any tips on how on earth to understand and memorise these?? I am almost at my wits end, help pleeeese

stuartander

Hi, I best thing im finding2help remember these is to write them down alot, ie
Material PriceVariance
Actual Material x Standard cost per unit X
Actual cost X

Material Usage Variance
Actual production x standard qty per unit x standard cost per unit X
Actual material x standard cost X

Labour Rate Variance
Actual Hrs x standard rate X
Actual Cost X

And so on, u will also see attern like i did which makes it easier to remember, ur c that the formulas for material usage and labour effeicency are quite similar but with different figures. ur know what i mean when you start revising. Also i dont know if you know but on the NQV pathway, there is unit 9 which has variances questions in which i am also finding useful.

I hope this helps!!!!

Stu

Primble

search the forum for this there are lots of useful threads