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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 | $7,200 | $16,700 | 300 suppliers |
Invoicing | $8,300 | $21,500 | 830 invoices |
In November, actual costs and activity were as follows:
Activity | Total Costs | Driver Amount |
Supplier relations | $24,804 | 312 suppliers |
Invoicing | $29,043 | 777 invoices |
What was the flexible budget variance for the supplier relations activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)?
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