HELP MY TEST IS TOMORROW

  • Creator
    Topic
  • #203412
    Whydoineedthis
    Participant

    Is anyone else really struggling with variance analysis from B2 like I am? I still can’t seem to figure it out or when I do it takes me 6 minutes a question. Am I screwed because this is a big part of the exam?

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  • #785314
    jeff
    Keymaster

    From the NINJA Notes…picture 3 Cats…SAM, SAL, and OAT

    STANDARD COSTING

    Material Variances (SAM)

    Standard Material Costs
    –Actual Material Costs
    = Material Variance

    Labor Variances (SAL)

    Standard Labor Costs
    –Actual Labor Costs
    = Labor Variance

    Overheard Variances (OAT)

    Overhead Applied
    –Actual Overhead Cost
    = Total Overhead Variance

    AUD - 79
    BEC - 80
    FAR - 76
    REG - 92
    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
    #785315
    Whydoineedthis
    Participant

    Thanks for the quick reply Jeff, I think my main issue is splitting these variances into the Price, Usage, Labor Rate and Efficiency variances when it comes to DL, DM or OH. Is there any easy way to master that part of it?

    #785316
    livealittle
    Participant

    I have to picture what they are asking…

    material price variance – what did I pay for it, was it on sale, did I pay a premium

    material usage variance – did I use too much per unit? if I did, why? was it that I got a great price on the material, but didn't realize it was substandard quality and had a lot of breakage, so my price was favorable, but my usage was unfavorable

    etc…

    BEC - 8/8/16
    REG - 66, 77
    AUD - 81
    FAR - 9/8/16

    #785317
    Mehow
    Participant

    You're not screwed. You might not even get a variance problem, but keep working and trying to figure it out.

    FAR = 86 4/22/16
    BEC = 80 6/01/16
    REG = 07/26/16
    AUD = ?

    #785318
    Whydoineedthis
    Participant

    So I think I have the DL and DM variances down now but the overhead ones are still confusing, just gonna hope for the best I guess.

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