variance & variable Actual Flexible Budget

Actual Flexible Budget Budgeted
Number of Students 2,340 2,240 
Price Per Student 3,175 3,225 
Variable Cost Per Student 1,910 1,950 
Total Fixed Cost 2,050,000 2,000,000 
Actual Flexible Budget Master Budget 
Sales Revenue $ 7,429,500 $ 7,546,500 $ 7,224,000 
Variable Costs $ 4,469,400 $ 4,563,000 $ 4,368,000 
Contribution Margin $ 2,960,100 $ 2,983,500 $ 2,856,000 
Fixed Costs $ 2,050,000 $ 2,000,000 $ 2,000,000 
Profit $ 910,100 $ 983,500 $ 856,000 
Assume that a portion of the spending variance for variable costs is due to the cost of 
purchasing permission for each student to access protected content. The “standard” 
allows faculty to purchase access for each student 4 times per term at a standard cost of 
$26.10 per purchase. During the most recent term (when 2,340 students were 
enrolled), 9,300 purchases were made at an actual cost of $243,660. 
Calculate the price, usage (efficiency), and overall spending variance for purchased 
access (hint: use the DM price and quantity formulas). Label each variance as 
favorable or unfavorable. 
a) Price Variance for Purchased Student Access: 
b) Quantity (Usage) Variance for Purchased Student Access : 
c) Spending Variance for Purchased Student Access:
***I attached a word doc with this in better format