Variances MAC - Any tips on how to remember them all?
sorcha
Registered Posts: 9 New contributor 🐸
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
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Comments
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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!!!!
Stu0 -
search the forum for this there are lots of useful threads0
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