Activity-based costing, flexible-budget variances for finance-function activities. Fast- a Grocery.com, an online company that delivers groceries to its customers, has the following information for its three finance activities in 2009:

REQUIRED 1. Calculate the flexible-budget variance for each activity in 2009.
2. Calculate the price and efficiency variances for each activity in 2009.LO1

Transcribed Image Text:

Rate per Unit of Cost Driver Static Activity Activity Level Cost Driver Budget Actual Receivables Output unit Remittances $0.639 $0.80 Payables Batch Invoices 2.900 2.85 Travel expenses Batch Travel claims 7.600 7.45 The output measure is the number of deliveries, which is the same as the number of remit- tances. The following is additional information. Static-Budget Actual Amounts Amount Number of deliveries 1,000,000 945,000 Batch size in terms of deliveries: Payables Travel expenses 5 500 4.468 501.587