Briefly explain the following terms:

Planning and Operating Variance:

A large beauty spa in Dubai has a budget for AED 500,000 in sales for April 2020.

On April 7, they have revenues of AED 125,000. The owner decides to shut down for 2 weeks because of COVID-19 to keep his staff and customers safe.

On April 21 (week 3 of April), the government of the UAE demands that all non-essential business (cinemas, barbers, hair salons, clothing stores, etc.) must shut down to prevent more spread of the disease.

The spa lost AED 375,000 due to closures in the month.

1-Determine how much loss was due to Planning Variance (show work)

2-Determine how much loss was due to Operating Variance (show work)