Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Meanings of variance

AAT Level 4 Financial Performance

Materials price variance How much of the variance is because we the price per kg/litre was different to what we had budgeted.
Materials usage variance How much of the variance is due to us using a different amount of material to what we had budgeted.
Labour rate variance How much of the variance is because we the paid a different labour rate per hour to what we had budgeted
Labour efficiency variance How much of the variance is due to us using a different amount of labour per unit to what we had budgeted.
Idle time variance Compare the total labour hours paid for With The productive labour hours
FIXED OVERHEAD EXPENDITURE VARIANCE Differences due to cost Actual overheads may be different to budgeted overheads.
FIXED OVERHEAD VOLUME VARIANCE Differences in production levels. If our absorption activity rate (units/machine hours/ labour hours) is different to budget, we will have absorbed a different amount of overhead.
Fixed overhead efficiency variance For example, our overheads may have been absorbed on a labour hour basis. But what if our labour is really efficient and making things more quickly? We will absorb less overheads. This variance will measure it
Fixed overhead capacity variance We might be able to get more out of our resource. For example, staff may work overtime, or machine may run for longer. Therefore they are able to produce more. Or, they may have been operating for less and therefore unable to produce as much.
Created by: KayeDavis
Popular Accounting sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards