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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 | $8,500 | $16,500 | 340 suppliers |
Invoicing | $10,320 | $24,400 | 860 invoices |
In November, actual costs and activity were as follows:
Activity | Total Costs | Driver Amount |
Supplier relations | $24,293 | 342 suppliers |
Invoicing | $35,665 | 861 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: $-15,793 | B: $-15,743 | C: $-7,793 | D: $0 | E: $707 | F: $757 |
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