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Variance Formula - Weird Way To Remember

Hey all,

I know for me remembering Variance formula was probably the most difficult bit of MDCL.

If you're struggling take a look at the attached, I know they're very weird but if I remembered these 7 sentences I could work out the variances correctly - I find it easier to remember sentences and pull them apart than remember a random string of formulae.

The first word in the sentences indicate which formula:
"Princess" would be a PRIce variance.
"Unhappy" would be a Usage variance. etc.

The name of the person first mentioned in the sentences indicates the order of subtraction - ie: Sally means Standard before Actual, and Ash means Actual before Standard.

The first letter of every word in the sentence indicates the formula
Sentence to remember: Princess Sally Crept Past Upto A Queen - PSCPUAQ
Princess = Price Variance / Labour Rate
Sally = Standard before Actual

Price Variance = Standard Cost Per Unit x Actual Quantity - Actual Cost Per Unit x Actual Quantity.

Some of you will probably just think it's weird and go back to another way to remember, but if you're really struggling like I was they might just help, I'd rather share it even if it helps one person!

Cheers :)


  • fedemennifedemenni MAAT, AATQB Posts: 94
    cool ! that is very helpful!

    I have my own method to remember,:

    AM X AP
    AM X SP
    BM X SP

    AH X AR
    AH X SR
    BH X SR

    A= Actual M=Material P=Price B=Budgeted (standard x actual production) S=Standard R=Rate H=Hours

    I need to get used to the variances for Fixed overheads
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