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Jackson a is a company that delivers automobile repair parts to service garages. The following ...

Jackson a is a company that delivers automobile repair parts to service garages. The following information is for three of the company's activities in 2015:

   Rate per Output unit/Batch
         Static       Actual
   Activity   Activity Level   Cost Driver   Budget   Cost
Receivables   Output unit   Sales invoices   $0.70   $0.75
Payables   Batch   Purchase invoices   $25.00   $23.00
Travel expenses   Batch   Travel claims   $55.00   $52.50

The output measure is the number of deliveries.
   Static   Actual
   Budget   Amount
Number of deliveries         20,000   22,200
Number of sales invoices         4,000   3,700
Batch size in terms of deliveries:
   Purchase invoices         10   8
   Travel expense claims         20   25

Required:
a.   Calculate the flexible-budget variance for each activity in 2015.
b.   Calculate the price and efficiency variances for each activity in 2015.

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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dxpayne Author

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Shared this answer this my study group, thank you for helping us out

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