ShawnTech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed element per month variable element per student variable element per course revenue $0 $354 $0 faculty wages $0 $0 $2,300 course supplies $0 $48 $40 administrative expenses $41,700 $13 $21 In October, the school budgeted for 1,400 students and 127 courses. The actual activity for the month was 1,500 students and 129 courses. Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
ShawnTech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed element per month variable element per student variable element per course revenue $0 $354 $0 faculty wages $0 $0 $2,300 course supplies $0 $48 $40 administrative expenses $41,700 $13 $21 In October, the school budgeted for 1,400 students and 127 courses. The actual activity for the month was 1,500 students and 129 courses. Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 4CE: Foy Company has a welding activity and wants to develop a flexible budget formula for the activity....
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ShawnTech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
| Fixed element per month | variable element per student | variable element per course | |
| revenue | $0 | $354 | $0 |
| faculty wages | $0 | $0 | $2,300 |
| course supplies | $0 | $48 | $40 |
| administrative expenses | $41,700 | $13 | $21 |
In October, the school budgeted for 1,400 students and 127 courses. The actual activity for the month was 1,500 students and 129 courses.
Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
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