[Anonymous]

For those who has Wiley textbook, on page 390 on the chart on the top, is this the correct interpretation?

Spending variance

(actual rate – standard rate)*actual quantity

Efficiency variance

(Actual quantity – standard quantity)*Standard rate

Budget spending variance

(actual overhead rate – Budgeted Overhead Rate)*actual production

Production volume variance

(Actual Production – Budgeted Production(*Budgeted Overhead Rate

[Anonymous]

I like the PURE DADS mnemonic:

P = D x A

U = D x S

R = D x A

E = D x S

Price = Difference x Actual

Usage = Difference x Standard

Rate= Difference x Actual

Efficiency = Difference x Standard

[Anonymous]

I like the PURE DADS mnemonic:

P = D x A

U = D x S

R = D x A

E = D x S

Price = Difference x Actual

Usage = Difference x Standard

Rate= Difference x Actual

Efficiency = Difference x Standard

[F15hy]

That mnemonic saved me on every variance question on my BEC exam.

CA Candidate

B-79 (4th Attempt, finally killed you Nov 2013)
A-81 (3rd Attempt, Feb 2014) AND I AM DONE!!!!!
R-80 (1st Attempt, Feb 2013)
F-77 (2nd attempt, Jan 2014)

Becker, Becker Final Review, NINJA 10-Point Combo
($M.O.B$)

CA Ethics-92%

[F15hy]

That mnemonic saved me on every variance question on my BEC exam.

CA Candidate

B-79 (4th Attempt, finally killed you Nov 2013)
A-81 (3rd Attempt, Feb 2014) AND I AM DONE!!!!!
R-80 (1st Attempt, Feb 2013)
F-77 (2nd attempt, Jan 2014)

Becker, Becker Final Review, NINJA 10-Point Combo
($M.O.B$)

CA Ethics-92%

[Soundwave]

One day before the exam, and I finally understand the PURE DADS mnemonic …

[Soundwave]

One day before the exam, and I finally understand the PURE DADS mnemonic …

[Anonymous]

Aww…soundwave…you should've asked and someone would've helped you. Good luck with your exam. I hope you get 5 easy MCQs on this and PURE DADS gives you the answers!

[Anonymous]

Aww…soundwave…you should've asked and someone would've helped you. Good luck with your exam. I hope you get 5 easy MCQs on this and PURE DADS gives you the answers!

[kahtwoloo]

I just memorized a table:

AQxAP

---

AQxSP

---

SQxSP

materials/labor materials/labor

price variance usage variance

Basically all three of the situations (materials, labor, voh) are based off that table.

I just think of it as ‘flowing' from the actual to standard.

Make extra sure to memorize the middle formula exactly.

Then all it really comes down to is:

actual/actual = price variance

standard/standard = usage variance

middle formula

The fixed overhead is the basically the same. I think its:

actual foh

---

budgeted foh

---

(i forgot and i dont have the book next to me sorry)

But whatever works for you, this subject was pretty intuitive for me. That DADS thing is easier for you.

BEC-51,71,70,77
AUD-50,62,68 (retake july)
REG-55
FAR-15(didnt study)

[kahtwoloo]

I just memorized a table:

AQxAP

---

AQxSP

---

SQxSP

materials/labor materials/labor

price variance usage variance

Basically all three of the situations (materials, labor, voh) are based off that table.

I just think of it as ‘flowing' from the actual to standard.

Make extra sure to memorize the middle formula exactly.

Then all it really comes down to is:

actual/actual = price variance

standard/standard = usage variance

middle formula

The fixed overhead is the basically the same. I think its:

actual foh

---

budgeted foh

---

(i forgot and i dont have the book next to me sorry)

But whatever works for you, this subject was pretty intuitive for me. That DADS thing is easier for you.

BEC-51,71,70,77
AUD-50,62,68 (retake july)
REG-55
FAR-15(didnt study)

[Author]

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