Accounting help needed URGENT

The photocopying department in a community college has budgeted monthly costs at $40,000 per  month plus $7 per student. Normally 800 student are enrolled. During January  there were 730 students (which is within the relevant range). At the end of the month, actual fixed costs were $42,000, and variable costs were $3,650.

A. Develop a static budget for phtocopying costs based on 800 students.

B. Calculate the January static budget variance for fixed and variable photocopyin costs.

C. Develope a flexible budget for the actual volume of students in January

D. Calculate the January flexible budget variance for fixed and variabe photocopying  costs.

E. Which variance information – Part (B) or (D) – is of higher quality? Explain

 

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