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The photocopying department in a community college has budgeted monthly costs at $40,000 per month plus $7 per student. Normally 800 students are enrolled. During January there were 730 students (which is within the relevant range). At the end of the month, actual fixed costs were $42,000, and variable costs were $3,650.
REQUIRED:
A. Develop a static budget for photocopying costs based on 800 students.
B. Calculate the January static budget variance for fixed and variable photocopying costs.
C. Develop a flexible budget for the actual volume of students in January.
D. Calculate the January flexible budget variance for fixed and variable photocopying costs.
E. Which variance information-part (B) or (D)-is of higher quality? Explain.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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