Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

More Books

Students also viewed these Accounting questions