Activity-based costing, flexible-budget variances for finance function activities. Josh Sanchez is the chief financial officer of Bouquets.com, an Internet company that enables cus¬

tomers to order deliveries of flowers by accessing its Web site. Sanchez is concerned with the efficiency and effectiveness of the finance function. He collects the following information for three activities in 2007:

Rate per Unit of Activity Activity Level Cost Driver Cost Driver Static Budget Actual Receivables Output unit Remittances $0,767 $0.90 Payables Batch Invoices 3.480 3.36 Travel expenses Batch Travel claims 9.120 8.88 The output measure is the number of deliveries, which is the same as the number ofremittances.

The following is additional information.

Static-Budget Actual Amounts Amounts Number of deliveries 1,000,000 948,000 Batch size in terms of deliveries:

Payables 5 4.46801 Travel expenses 500 501.587 Required 1. Calculate the flexible-budget variance for each activity in 2007.
2. Calculate the price and efficiency variances for each activity in 2007.