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 | $5,460 | $15,400 | 210 suppliers |
Invoicing | $8,520 | $20,900 | 710 invoices |
In November, actual costs and activity were as follows:
Activity | Total Costs | Driver Amount |
Supplier relations | $20,131 | 188 suppliers |
Invoicing | $28,377 | 650 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)?
A: $-15,243 | B: $-14,671 | C: $-4,731 | D: $0 | E: $157 | F: $729 |
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