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Post Info TOPIC: Variances
boon


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Variances
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Hi everyone,

 

Is anybody aware of AAASSS when calculating variances, Material price/usage and Labour rate/efficiency. I was taught AAASSS by one of my tutors, it was really useful and more easy to remember than the list of formulas that you are given.

 

I have not seen it in any books either. 

 

Regards

Azz

 

 



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Shamus


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Hi Azz,

not something that I've come accross (but then, every tutor makes up their own acronyms).

do you want to relay the details of it (and possibly an example) here

kind regards,

Shaun,

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
boon


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Hi Shaun,

It works as Actual - Actual, Actual - Standard and Standard - Standard (thats where the AAASSS comes from).

 

Standard Cost

Material 10kg @ 20 per kg

 

 

Actual Cost


Material 7,900 used @ 159,500

800 units produced

Actual price per kg                                    Actual Total Price

    20.19 ish              x            7900                                159,500

                                                                                                                                                        Price variance 1,500 A

Actual usage@ std price                                   Standard total for actual prod

    7900            x                20                                   158,000

                                                                                                                                                        Usage variance 2,000 F

Standard Price for std usage                            Standard production Total  

     20             x                8000                                 160,000

 

It works similar way for Labour

I find it easier this way, although it does look long winded.

 

Regards

Azz

 

 



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