Variances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone.

Can anyone help me, please?

I'm struggling with remembering the formulae for overhead variances. I can get the material and labour sorted out, but the overheads just baffle me. There doesn't seem to be any logic to them. Does anyone have any memory aids, like mnemonics or poems or anything that will help?

Any help would be greatly appreciated.

Thank you

Michel

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    Try looking here:-

    http://www.aat.org.uk/forums/posts/list/10676.page;jsessionid=8FA0EE734695D476EE90757164F2A645

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    Hi Dean,

    I can do the maths when I'm looking at the formula. It's memorising the formula that's eluding me. After all, the written version will not be available in the exam. I need a poem or something to help me memorise it.

    Thanks

    Mike
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    I remember them in this way:-

    VBS - Volume (Budgeted - Standard) x OAR
    CAB - Capacity (Actual - Budgeted) x OAR
    ESA - Efficiency (Standard - Actual) x OAR

    This may or may not help, each to there own.

    You could also remember the VOLUME one this way

    SBV = Silly Bloody Variances :lol:

    Although putting the figures in the calculate the first way will give you when looking at the calculator the correct Adverse or Favourable.

    Give it a go and see what you come up with, I hope this helps :)

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    There is a brilliant way of learning the variances on the MSN AAT forum known as PURE AS - worth a look, I have found it really helpful
    http://groups.msn.com/AATTechnician/general.msnw?action=get_message&mview=0&ID_Message=347&LastModified=4675564071810667295

    best of luck
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    These suggestions are much better.

    Thank you both.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    Glad you have found it useful

    Best of luck, this is a really hard unit to do
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    The SAAB diagram one was kindly sent to me when I was struggling and it was like a switch - everything was well with the world afterwards. For labour and material I found PAUS very useful and easy to remember.

    Price variances are based on
    Actual quantities used and
    Usage variances are based on
    Standard costs.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    The SAAB diagram done it for me too! Many Thanks to Fiona Bell for sending it to me.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Variances

    You are very welcome - I remember the relief when it was sent to me. This is where networking really pays off, when you can help to distribute useful tools and prompts.

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