Question: a)Explain why we introduce two types of variance, when understanding the variance between budgeted and actual use of costs. b)If the budgeted cost of materials

  1. a)Explain why we introduce two types of variance, when understanding the variance between budgeted and actual use of costs.
  2. b)If the budgeted cost of materials is 100 per unit, but the actual cost per unit is 80, and the budgeted quantity used is 1000 units, whilst the actual quantity used is 1250, provide a short report to management about what has happened.

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