Asked by Darby Fischer on Jul 28, 2024
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Rossean 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 October, the school budgeted for 1,400 students and 127 courses. The actual activity for the month was 1,500 students and 129 courses.Required:Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
Cost Drivers
Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.
Vocational School
An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.
Activity Variances
The differences between planned or expected levels of activity (and associated costs) and actual outcomes, often used for performance evaluation and control.
- Assess discrepancies in tasks and discern whether they are beneficial or detrimental.
Verified Answer
DW
Learning Objectives
- Assess discrepancies in tasks and discern whether they are beneficial or detrimental.