sandyhood-variances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
please spend some of your time with me, i am ok with the formula as i studied them. but can you give me a little chapter as to or what to look for when asked to find the variances. material and expenditure is fine. fill me up on usage volume ect. email address is nosaj@anbell.net<BR><BR>thanks much

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    sandyhood-variances

    Usage variances show a difference in the amount of material you might expect to use for a given level of output and the actual material input. They are valued using the standard cost of one metre/kg or litre of the raw material.<BR><BR>Don't be surprised if you see two different materials as inputs, afterall not may things are made with just one raw material input.<BR><BR><BR>Volume variances identify the difference between the budgeted output and the actual output. Again this is valued in terms of the hours (usually labour hours per unit at the standatd overhead absorption rate per hour)<BR><BR>I hope this helps. Sorry I haven't been able to illustrate this with examples, but I think there are 2 worked examples of past papers at <a target=new class=ftalternatingbarlinklarge href="http://www.cxgames.co.uk/sandy">www.cxgames.co.uk/sandy</a><BR>Brown Ltd from June 04 is probably a better example
  • System
    System Posts: 100,534 🤖 Admin 🤖
    sandyhood-variances

    thanks sandy

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