PEV - operating statement reconciling standard to actual costs

twinmeister Registered Posts: 122 Dedicated contributor 🦉
Would I be right in thinking that if we ever get results for Fixed Overhead Volume, Fixed Overhead Capacity and Fixed Overhead Efficiency variances, we'd only include the Fixed Overhead Volume variance?

FOCapacityV plus FOEficiency V = FOVolume Variance

If we included FOCV and FOEV we'd be double counting FOVV??

(Working through PEV Dec 2007 and it just occured to me)


  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    for the exam i would put in the capicity and efficiency but yes the two add back or your balance will be out (its a good way to check your figures)
  • Jentel
    Jentel Registered Posts: 60 Regular contributor ⭐
    No - i am sure you just include FO capacity & FO efficiency

    These are broken down from FO Volume so your Op Statement won't agree if you include all 3
  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
    Thanks for your help.

    With PEV I seem to keep doubting what I'm doing, so it's great to be able to double check as I'm going along.

  • Andypandy
    Andypandy Registered Posts: 526 Epic contributor 🐘
    Thanks for this thread - & sorting out a problem I never even knew I had untill now:)
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