Compute the static budget variances and the

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Reference no: EM13614312

The systems consulting department of Johnson Swimwear designsdata collecting, encoding, and reporting systems to fit the needsof other departments within the company. An overall cost driver isthe number of requests made to the systems consulting department.The expected variable cost of handling a request was $500, and thenumber of requests expected for June 20X1 was 75. Johnson budgetedits monthly fixed costs for the department (salaries, equipmentdepreciation, space costs) at $65,000.

The actual number of requests serviced by systems consulting inJune 20X1 was 90, and the total costs incurred by the departmentwere $116,000. Of that amount, $76,000 was for fixed costs.

Compute the static budget variances and the flexible-budgetvariances for variable and fixed costs for the systems consultingdepartment for June 20X1.

Reference no: EM13614312

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