Reference no: EM133028254

Question - The fire department expected to spend $100,000 in April. Actually, it spent $108,680. The department thought it would pay each member of its team of firefighters $25 per hour. However, it paid them each $26 per hour on average. The department expected that the team of firefighters would work a total of 4,000 hours and fight 100 fires. Of course, many hours the firefighters are on duty in the station house between fires. Those hours are considered to be worked and the firefighters are paid for those hours. The actual results were 4,180 hours worked by the team of fighters and 110 fires fought by the department.

The Original Budget is 100 x 40 x $25 = $100,000. The Actual Budget is 110 x 38 x $26 = $108,680.

What is the Total Variance? Do not include dollar sign or comma in your answer.

Is this a favorable or an unfavorable variance?

Derive the Flex Budget and use it to calculate the Volume Variance. What is the Volume Variance? Do not include dollar sign or comma in your answer.

Derive the VQA Budget and use it to calculate the Quantity Variance. What is the Quantity Variance? Do not include dollar sign or comma in your answer.

Use the VQA Budget and the Actual Budget to calculate the Price Variance. What is the Price Variance? Do not include dollar sign or comma in your answer.