[akhil123]

Dear Sir,
This is also regarding the question secure net 2009 dec Paper, this was the answer i got which is completly different as he mentioned above, could you please explain which one is the real answer…

Planning price variance = ($4·80 – $4)4,200 = $3,360 Adverse
Planning Usage variance = (4,200 – 4,000)$4 = $800 Adverse
The total planning error (variance) is $4,160 Adverse
The operational variances compare the actual spend with the revised budget figures.
Operational price variance = ($5·25 – $4·80)3,500kg = $1,575 Adverse
Operational usage variance = (3,500 – 4,200)$4·80 = $3,360 Favourable
The total operational variance is $1,785 Favourable

Thank you
Akhil

[Author]

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