[ICM117]

I cannot wrap my head around the different Variable Overhead Variances. Does anyone have any good study tips? I have wiley, becker, and ninja notes.

Thanks for your help!

[Anonymous]

This is a great question – I am having the same problem. I can never figure out which way to calculate it when I have a questions – thus I get almost all of those questions incorrect!!

[Anonymous]

This is a great question – I am having the same problem. I can never figure out which way to calculate it when I have a questions – thus I get almost all of those questions incorrect!!

[Anonymous]

for the variances in general i just remember aqar->aqsr->sqsr moving in alphabetical order from left to right. (actual quantity times actual rate) (actual quantity times standard rate) (standard quantity times standard rate). In terms of which variance you are looking for it should be easier to know where to look if you memorize the formula above. If the question is asking about rate/spending look no further than the portion that emphasizes in the difference between actual rate and standard rate which would be aqar->aqsr. Quantity and efficiency focus on actual and standard quantity differences so you use the right side of the formula. I would suggest practicing these until you nail them so that you can be prepared to answer trickier questions that may include utilizing both sides of the equation to answer.

[Anonymous]

for the variances in general i just remember aqar->aqsr->sqsr moving in alphabetical order from left to right. (actual quantity times actual rate) (actual quantity times standard rate) (standard quantity times standard rate). In terms of which variance you are looking for it should be easier to know where to look if you memorize the formula above. If the question is asking about rate/spending look no further than the portion that emphasizes in the difference between actual rate and standard rate which would be aqar->aqsr. Quantity and efficiency focus on actual and standard quantity differences so you use the right side of the formula. I would suggest practicing these until you nail them so that you can be prepared to answer trickier questions that may include utilizing both sides of the equation to answer.

[Author]

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