[Anonymous]

My strong points are questions with words, and basically the more different numbers, many of which are irrelevant, get me very confused.

Variance analysis I find to be especially tricky how some questions include so many distractor numbers, I was wondering if anyone could explain how they go about these questions or any tricks they came up with, thanks

[Nutcracker2016]

I too hate it with my heart and soul but this link helped me to solve basic questions with variance analysis https://cpa-exam.dalesines.com/2010/05/bec-5-additional-info.html

Trust in yourself. It is the key to passing any exam.

Passed: FAR -1st attempt

AUD-2nd attempt

REG-1st attempt

BEC- 3rd attempt

DONE

[CPA so close, so far away]

You just have to keep grinding them. First memorize the formulas. Do that before doing any MCQs. Then when you see a MCQ, write the applicable formula and plug in each component. 100% chance you will see this on the exam. They have always been heavily tested.

[Anonymous]

Can someone please explain to me the differences between budgeted vs. standard Vs. actual vs applied. Once I feel I learn that, I will be able to master the formulas.

[Mike J]

I feel like I finally got a feel for BEC when I divorced myself from the notion of “I gotta memorize the formulas!”

Yes, you have to know the formulas. But, that comes from practice. A lot of practice.

I wrote them out in my notes as follows:

Write out to the left the basic Sales minus COGS = Gross Profit minus factory overhead equals net income formula.

Next to that, write out the variance formulas for Sales, Direct Materials, Direct Labor and Factory Overhead.

Under each, write out the units to show (1) what you have and what will be cancelled out; and (2) what you need–usually dollars.

This took up about 75% of a typed page.

The important thing is to understand WHY we need the formulas. So, I started to solve the MCQs with the page in front of me. Eventually, I got to the point where I didn't need it.

Throughout my notes I grouped like formulas together. Where ever possible I would identify the connective tissue, not just with the formulas but with Accounting treatments.

So in short, just think about what you're being asked to solve. The knowledge and comfort level will come.

Good luck

AUD - 90
BEC - 79
FAR - 77
REG - 77

They don't trust JUST ANYBODY to count beans

[Anonymous]

Very helpful answers I will keep it all in mind!
I also think for these concepts roger videos trump becker, lucky for us he puts some on youtbue.
When people say BEC is the easiest, they should really include: except for variance.
I believe this is the hardest single concept on any of the four tests, but that's just me

[Trele6]

I felt very disappointed for the amount of time and effort I put into variance analysis questions versus how many I got on my test day. Based on how much emphasis was placed on them in Becker I assumed they would be a major part of my test. I think I had 2-3 only… Your results may be different, but I could have skipped that chapter and still passed based on the test I received.

B - 80 Jun16
A - 74 Aug16, 77 Oct16
R - 87 Nov15
F - 79 Apr16
Ethics - 98 Nov16
Licensed in New Mexico Dec16

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[JMG]

Becker's PURE ASAS mnemonic helped me memorize the formulas for variances.

Basically you line up:
Price – Actual (quantity/usage)
Usage – Standard (price)
Rate – Actual (hours)
Efficiency – Standard (rate)

Try to remember whatever variance you are using, that needs to be the difference between actual and standard. For example Direct Materials Price Variance would be the difference between actual and standard price times the actual (this is where the ASAS comes in) quantity.

The mnemonic works for DM, DL, and VOH, but not FOH. Fixed Overhead has its own variance formulas.

Your fail scores are like battle scars, so wear them proudly!

REG - 76 (expired 7/31/18)

BEC - 69, 72, 80

AUD - 62, 70, 74

FAR - 50, 60

[Anonymous]

Thank you @JMG.

@Trele, I am not sure when you took BEC but now with 4 sims at, only 3 being graded at 35% of the points, variance has gone from a 2-3 MC question problem to a potential 11.67 point problem. In light of the AICPA practice sim having a variance question, I think this is worth anyone's attention migos

[Anonymous]

Alright team I had my Variance epiphany today. Cheers to @Mike03~ for your advice to understand “WHY” variance is happening. Using the Becker charts, the stupid 2 BV or not 2 BV, ABA BSA, etc, I finally noticed what each item actually meant, and not just trying to comprehend a random symbol.

You will eventually be able to memorize the formulas for it, but that extra comprehension comes from realizing yes a business would want to know what the general net overhead difference is, or they would want to separate the amount that the budget and the volume each differed from what they thought they'd spend. Or they'd go a step further breaking budget down to spending, and efficiency, as well as still volume, to have a more magnified view of what is going on in their factory.

Feel free to post your own questions, for any test in here, thanks guys.

[Mike J]

I'm glad I could help, Binghamton. We New York folk gotta stick together (tho the other 49 states are cool too).

AUD - 90
BEC - 79
FAR - 77
REG - 77

They don't trust JUST ANYBODY to count beans

[Author]

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