ABS Technical Bulletin
#5
Heat/Charge Variance
Information
(released October
15, 1993)
An additional cost information line has been added to the Least
Cost Charge Design (MIX) Report. The Alloy Blending System now
displays the grade (alloy) standard cost per unit (pound, kilo,
etc.) and computes the total variance for the charge. The variance
is calculated as:
(Grade/Alloy Std. Cost per
Unit x (Final Wgt. - Heel Wgt.)) - Solution Actual Cost = Variance
Refer to the example below:
Based on this example, the variance calculation would be:
(.3525Œ
x (10,000
- 2,000Ž))
- 2,767.70
= 52.30
NOTE: If a standard cost for the
grade/alloy is not established within the Grade Record File, the
heat variance information cannot be calculated and, therefore,
will not be displayed.
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