[anano]

One more argument from my side))))
“the planning variances existed because the standard cost card was not updated and as such the production manager should not be held responsible for the adverse planning variances” – as i remember from theory, planning variances are depended on external changes.. Manager should not be held responsible for adverse variances even if standarts were updated… because change of uniform design was decided by school, if i remember correctly… But im not sure))))
Anyway))) i think i should break down into operational and planning variances)))

[anano]

Now I also found similar question about Truffle Co.. there is required to calculate op&planning variances, you’re right..
I’ve failed)))

[anano]

hope so))

[anano]

I feel a little better))) It’s not only me who didn’t use planning and operational variances))

[anano]

I agree, I thought, accountant-related part was key part in question. I think revised budget means adjusted budget. Accountant was responsible to set new price and new quantity of material. Budget would be prepared with old standarts, because new standarts weren’t updated.
But everyone here has solved Q31 with planning and operational variances, so maybe I’m wrong.

[anano]

In Q31 accountant hadn’t updated standarts and as I remembered, only updated budget may be called revised budget. So I didn’t break it into planning and operational variances. This is maybe my mistake, but anyway my material price variance will be the correct)) 9600

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