The following is monthly budgeted cost and activity information for two activities in the purchasing department of X Company:ActivityVariable CostsFixed CostsCost DriverSupplier relations$9,500$16,900380 suppliersInvoicing$11,700$26,300780 invoicesIn November, actual costs and activity were as follows:ActivityTotal CostsDriver AmountSupplier relations$28,555430 suppliersInvoicing$38,115806 invoicesWhat was the flexible budget variance for the invoicing activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)?A: $-26,415B: $-26,025C: $-11,815D: $-115E: $0 OF: $275

Solution: Budgeted variable cost per invoice = $11,700 / 780 = $15 per invoice Flexible budget 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 $9,500 $16,900 380 suppliers Invoicing $11,700 $26,300 780 invoices In November, actual costs and activity were as follows: Activity Supplier relations Total Costs Driver Amount $28,555 430 suppliers Invoicing $38,115 806 invoices What was the flexible budget variance for the invoicing activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)? A: $-26,415 B: $-26,025 ỐC: $-11,815 D: $-115 OE: $0 OF: $275

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 $9,500 $16,900 380 suppliers Invoicing $11,700 $26,300 780 invoices In November, actual costs and activity were as follows: Activity Supplier relations Total Costs Driver Amount $28,555 430 suppliers Invoicing $38,115 806 invoices What was the flexible budget variance for the invoicing activity for November (assume that favorable variances are positive numbers and unfavorable variances are negative numbers)? A: $-26,415 B: $-26,025 ỐC: $-11,815 D: $-115 OE: $0 OF: $275

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 5BE

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