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Four Flags is a retail department store. On January 1, 2019, Four Flags' accountants used the following data to develop the master budget for Four
Four Flags is a retail department store. On January 1, 2019, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2019: Cost Fixed Variable (per sales dollar) Cost of Goods Sold $0 $0.540 Selling and Promotion Expense $210,000 $0.080 Building Occupancy Expense $190,000 $0.020 Buying Expense $145,000 $0.050 Delivery Expense $120,000 $0.010 Credit and Collection Expense $76,000 $0.001 Expected unit sales in 2019 were 1,200,000, and 2019 total revenue was expected to be $12,000,000. Actual 2019 unit sales turned out to be 1,050,000, and total revenue was $10,500,000. Actual total costs in 2019 were: Cost of Goods Sold $6,000,000 Selling and Promotion Expense $900,000 Building Occupancy Expense $480,000 Buying Expense $620,000 Delivery Expense $180,000 Credit and Collection Expense $50,000 Required Compute the flexible budget variances in 2019 for the following two cost items (NOTE: enter favorable variances as positive numbers and unfavorable variances as negative numbers): Selling and Promotion Expense Buying Expense
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