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Question - 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
$10,920
$15,200
390 suppliers
Invoicing
$9,620
$25,800
740 invoices
In November, actual costs and activity were as follows:
Total Costs
Driver Amount
$25,521
336 suppliers
$36,126
776 invoices
Required - 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)?
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