Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is monthly budgeted cost and activity information for two activities in the purchasing department of X Company: Activity Variable Costs Fixed Costs Cost
The following is monthly budgeted cost and activity information for two activities in the purchasing department of X Company:
Activity | Variable Costs | Fixed Costs | Cost Driver |
Supplier relations | $9,250 | $16,400 | 370 suppliers |
Invoicing | $8,470 | $23,100 | 770 invoices |
In November, actual costs and activity were as follows:
Activity | Total Costs | Driver Amount |
Supplier relations | $26,236 | 409 suppliers |
Invoicing | $30,050 | 721 invoices |
What was the flexible budget variance for the invoicing activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)?
A: $-22,119 | B: $-21,580 | C: $-6,950 | D: $0 | E: $981 | F: $1,520 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started