Fixed O'head Efficiency Variance????
Dimples
Registered Posts: 11 New contributor 🐸
Hi All
Sitting the MAC exam tomorrow, 1st part of the paper im ok with but when it comes to variences i go to pieces, ive just about grasped the direct material price variance but for the life of me i just cant get the fixed overhead caoacity varience and the fixed overhead efficiency variance - for examle im doing December 06 paper section 2.1 b and even with the answers in front of me i just dont know how theyve come to their answer - purely cos i dont understand what im working out exactly? can someone please put it into simple and i mean very simple terms for me - im so stressed ive been sat here in tears for nearly an hour (
Thanks x
Sitting the MAC exam tomorrow, 1st part of the paper im ok with but when it comes to variences i go to pieces, ive just about grasped the direct material price variance but for the life of me i just cant get the fixed overhead caoacity varience and the fixed overhead efficiency variance - for examle im doing December 06 paper section 2.1 b and even with the answers in front of me i just dont know how theyve come to their answer - purely cos i dont understand what im working out exactly? can someone please put it into simple and i mean very simple terms for me - im so stressed ive been sat here in tears for nearly an hour (
Thanks x
0
Comments
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http://forums.aat.org.uk/showthread.php?t=27278&highlight=fixed+overhead+efficiency
try this link and i think it has a worked example too0 -
Thanks Taskey, but i already have this printed out and the bit on fixed overhead efficiency variance might as well be in french - i dont get it?!?!?! im seriously thinking about not bothering to go to the exam tomorrow!!0
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also read the PAMDILL thread,
hope that helps
Tracy0 -
dont be disheartened, i was exactly the same.
i have trawled through posts from when i was doing variances and this really helped me.
Fixed overhead expenditure
Budgeted overheads - Actual overheads
Fixed overhead volume variance
Standard hours
less budgeted hours
=volume variance x OAR
I remember this by - Silly Bloody Variance
Hence the S in silly = Standard hours, B in Bloody = Budgeted hours and V in Variance = Volume
Fixed overhead Capacity variance
Actual hours
less Budgeted hours
=Capacity variance x OAR
I remember this by ABC A for Actual Hours B for Budgeted hours and C for capacity varience
Fixed Overhead Efficiency Variance
Standard hours
less actual hours
=Efficiency Variance x OAR
I remember this by Stamped Address Envelope
Hence S in stamped = Standard hours A in Address = Actual hours and E in Envelope = Efficiency Varience
as soon as i got in the exam room, i wrote down SAE and SBV then read the paper and once i go to this part i knew what to do, try it on some questions now and see if it sticks.
Tracy0 -
THank you so much for your help - im going to print it off now and read it 100 times before i go to bed - hopefully it will sink in (fingers crossed!) Roll on Thursday night when all my exams will be over - and if ive failed any i aint re sitting thats for sure!!!
Thanks again x0
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