PEV Advice Needed....Please

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:10AM in AAT student discussion
Hi,<BR><BR>After failing section 1 PEV in June 05, I am trying to revise Fixed Overhead Volume Variances in prep for Dec.<BR><BR>I am still confused, I thought the solution was budgeted units - actual units x standard fixed overhead rate ph.<BR><BR>I am coming across questions where by budgeted hrs - actual hrs x standard fixed overhead rate ph.<BR><BR>Is this usual ? If so, how can I tell what to use in the exam !<BR><BR>Thanks,<BR>Martin

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Advice Needed....Please

    This was the bane of my life for a while but once you have it fixed in your head you will be fine. I think you are confusing volume with expenditure.<BR><BR>Volume - OAR(Standard hours for actual output less budgeted hours)<BR><BR>Will send you something by e-mail to help explain if you send me your e-mail address. Mine is in my profile.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Advice Needed....Please

    Birdseyeview's reponse is perfect<BR><BR>I will just add a point I am sure you mastered at Intermediate<BR>OARs are <b>per hour</b> <i> usually per direct labour hour</i> so try to remember that the fixed overhead volume variance is comparing the standard cost of what you produced with the budgeted cost<BR><BR>And the standard cost is found by calculating the standard time for the actual output <i> and if you want to, multiplying this by the OAR per hour</i><BR><BR>Many formula approaches say the (standard time of actual output less the budgeted time) x the OAR<BR><BR>Others say (standard time of actual output x the OAR) less budgeted cost<BR><i> they both give the same answer</i>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Advice Needed....Please

    Sorry, didn't get a chance to come back on line and you may have left work by now. Have sent a message anyway but if you would like me to send it to you at home as well feel free to ask.<BR><BR>Hi Sandy, got the shakes when I saw your name as I thought I had given completely the wrong advice. Although I know you don't support the formulae approach I have a couple of diagrams - one which really helps explain the order and logic and the other which is simply a prompt so was fairly sure I had got it right but there is no accounting for typos. Notice from another thread that you also offer CIMA revision courses so our paths may cross at some time over the next year.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Advice Needed....Please

    Hi
    Dont know if you have received my other mail. but could you send me the notes on overhead variances please.
    Desperately need any help i can get.
    Thanks
    Sue
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Advice Needed....Please

    Hi
    Could I also jave the notes ofr variances.. my head is mashed like a potato

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