Four flags is a retail department store on january 1 2014


Four Flags is a retail department store. On January 1, 2014, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2014:

Cost Fixed Variable (per unit sold)

Cost of Goods Sold $0 (F) $6.80 (V)

Selling and Promotion Expense $200,000 (F) $0.80 (V)

Building Occupancy Expense $180,000 (F) $0.10 (V)

Buying Expense $140,000 (F) $0.40 (V)

Delivery Expense $115,000(F) $0.10 (V)

Credit and Collection Expense $64,000 (F) $0.03 (V)

Expected unit sales in 2014 were 1,250,000, and 2014 total revenue was expected to be $12,500,000. Actual 2014 unit sales turned out to be 1,100,000, and total revenue was $11,000,000. Actual total costs in 2014 were:

Cost of Goods Sold $6,000,000

Selling and Promotion Expense $1,000,000

Building Occupancy Expense $300,000

Buying Expense $550,000

Delivery Expense $200,000

Credit and Collection Expense $50,000

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

Selling and Promotion Expense _________________?

Building Occupancy Expense __________________?

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Operation Management: Four flags is a retail department store on january 1 2014
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