Variances for the 100th time!

jewels.p

When calculating variances I got the wrong answer as I used the figures from the amount of product used and not the amount bought.

I take it you always use the amount bought and NEVER the amount used when calculating variances.............................bloomin things just when I start to get it right something else throws me!

Can someone please confirm this for me.

Thanks

Princess05

Variances for the 100th time...!!

Hi Jewels...

I am having the same problem with these variances...as soon as I think I have solved them I come across another problem i.e. fixed overhead variances - I just about got my head round calculating them when the were absorbed on an hourly basis, then I come across a set of questions where they are absorbed on a unit basis which has completely thrown me...!!
This is my last chance to sit the PEV exam and it's really starting to get to me now!!! Feel like giving up.

SandyHood

Jewels
Material Usage Variance
The standard material cost of what we made less the standard cost of the materials used to make them.

Material Price Variance
The standard material cost of what we purchased less the actual cost.

That said, the only paper where there was a difference between materials used and materials purchased was not answered well. So I do not expect the examiner to test that this time around.

jewels.p

SandyHood wrote: »

Jewels
Material Usage Variance
The standard material cost of what we made less the standard cost of the materials used to make them.

Material Price Variance
The standard material cost of what we purchased less the actual cost.

That said, the only paper where there was a difference between materials used and materials purchased was not answered well. So I do not expect the examiner to test that this time around.

That was probably the paper I attempted then. It was December 08 I did! Completely threw me.

Thanks Sandy you always make it sound easy!