What are the planning and operational variances

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

Questions Cloud

Causes of action that rob may against the church : What are the causes of action that Rob Jr. may have against the church? What are the causes of action that Rob's parents may have against the church on their behalf?

Innovative internet-based company with gross revenues : This assignment consists of two (2) sections: a project introduction and a project plan. You must submit both sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is w..

Describe what happens to the cash account : Describe what happens to the cash account of each entity that you identified in Requirement a.

International versus u.s. standards : Under U.S. GAAP, property, plant, and equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired.

What are the planning and operational variances : 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). What are the planning and operational variances?

Primary objective of a for-profit firm : The use of quarterly data to develop the forecasting model Yt= a +bYt?1 is an example of which forecasting technique?

Describe what is meant by the term whistle-blowing : Describe what is meant by the term ‘whistle-blowing' from various points of view such as law-makers, senior management and those considering becoming whistle-blowers - Prepare a business report of about 1500 words that gives an ethical analysis of ..

Receivable and doubtful accounts : ending balances in account receivable and doubtful accounts

Ensuring offering products are fresh and not outdated : It is important that the company keep track of their inventory in order to ensure they are constantly offering products that are fresh and not outdated. It is also important to track their inventory in order to keep up with customer demands and wh..

User Account

All Pages