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 |
$5.80 |
| Selling and Promotion Expense |
$215,000 |
$0.80 |
| Building Occupancy Expense |
$190,000 |
$0.20 |
| Buying Expense |
$140,000 |
$0.30 |
| Delivery Expense |
$110,000 |
$0.10 |
| Credit and Collection Expense |
$66,000 |
$0.03 |
Expected unit sales in 2014 were 1,300,000, and 2014 total revenue was expected to be $13,000,000. Actual 2014 unit sales turned out to be 1,000,000, and total revenue was $10,000,000. Actual total costs in 2014 were:
| Cost of Goods Sold |
$6,000,000 |
| Selling and Promotion Expense |
$900,000 |
| Building Occupancy Expense |
$390,000 |
| Buying Expense |
$640,000 |
| Delivery Expense |
$190,000 |
| Credit and Collection Expense |
$25,000 |
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):
Credit and Collection Expense =
Selling and Promotion Expense =
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