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


  • stuartander
    stuartander Registered Posts: 82 Regular contributor ⭐
    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!!!!

  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    search the forum for this there are lots of useful threads
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