Asked by Morgan Young on May 22, 2024
Verified
Boan Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In August, the school budgeted for 1,590 students and 110 courses. The school's income statement showing the actual results for the month appears below:
Required:Prepare a report showing the school's activity variances for August. Label each variance as favorable (F) or unfavorable (U).
Cost Drivers
Factors that cause the cost of a product or service to change, such as materials, labor, and overhead expenses.
Vocational School
An educational institution that provides practical and skills-based training for specific careers or trades.
Budgets
Financial plans outlining expected revenues and expenditures for a specific period.
- Calculate activity variances and identify them as favorable or unfavorable.
Verified Answer
AG
Learning Objectives
- Calculate activity variances and identify them as favorable or unfavorable.