Four flags is a retail department store on january 1 2012

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Reference no: EM13579129

Four Flags is a retail department store. On January 1, 2012, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2012:

Cost	Fixed	Variable (per unit sold)
Cost of Goods Sold	$0	$5.80
Selling and Promotion Expense	$200,000	$0.80
Building Occupancy Expense	$180,000	$0.10
Buying Expense	$155,000	$0.40
Delivery Expense	$105,000	$0.10
Credit and Collection Expense	$78,000	$0.01

Expected unit sales in 2012 were 1,250,000, and 2012 total revenue was expected to be $12,500,000. Actual 2012 unit sales turned out to be 1,000,000, and total revenue was $10,000,000. Actual total costs in 2012 were:

Cost of Goods Sold	$6,000,000
Selling and Promotion Expense	$900,000
Building Occupancy Expense	$490,000
Buying Expense	$680,000
Delivery Expense	$200,000
Credit and Collection Expense	$70,000

Required: Compute the flexible-budget variances for the following two cost items (enter favorable variances as positive numbers and unfavorable variances as negative numbers):

Reference no: EM13579129

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