What are the planning and operational variances

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Reference no: EM13920309

Suppose a budget is prepared which includes a raw materials cost per unit of product of $2 (2 kg of copper at $1 per kg). Due to a rise in world prices for copper during the year, the average market price of copper rises to $1.50 per kg. During the year, 1,000 units were produced at a cost of $3,250 for 2,200 kg of copper.

What are the planning and operational variances?

Reference no: EM13920309

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