Four Flags is a retail department store. On January 1, 2019, Four Flags' accountants used...
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Four Flags is a retail department store. On January 1, 2019, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2019: Cost Fixed Variable (per unit sold) Cost of Goods Sold $0 $6.00 Selling and Promotion Expense $200,000 $0.80 Building Occupancy Expense $190,000 $0.20 Buying Expense $150,000 $0.30 Delivery Expense $100,000 $0.10 Credit and Collection Expense $72,000 $0.03 Expected unit sales in 2019 were 1,300,000, and 2019 total revenue was expected to be $13,000,000. Actual 2019 unit sales turned out to be 1,100,000, and total revenue was $11,000,000. Actual total costs in 2019 were: Cost of Goods Sold $6,000,000 Selling and Promotion Expense $900,000 Building Occupancy Expense $310,000 Buying Expense $610,000 Delivery Expense $160,000 Credit and Collection Expense $30,000 Required Compute the flexible budget variances in 2019 for the following two cost items (NOTE: enter favorable variances as positive numbers and unfavorable variances as negative numbers): Buying Expense Building Occupancy Expense
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