Computing nonmanufacturing cost variances (Appendix 11.1). Eastwood Insurance Company estimates that its overhead costs for policy administration should amount to $80 for each new policy obtained and $2 per year for each $1,000 face amount of insurance outstanding. The company set a budget of selling 6,000 new policies during the coming period. In addition, the company estimated that the total face amount of insurance outstanding for the period would equal $12,000,000.

During the period, actual costs related to new policies amounted to $430,000. The firm sold a total of 6,200 new policies.

The cost of maintaining existing policies was $27,000. Had the firm incurred these costs at the same prices as were in effect when it prepared the budget, the costs would have been $26,000. However, some costs changed. Policies worth $13,000,000 were outstanding during the period.

Prepare a schedule to show the variances between the flexible budget and actual costs for this operation.