# Assume that a portion of the spending variance for variable costs

Actual Flexible Budget BudgetedNumber of Students 2,340 2,240Price Per Student 3,175 3,225Variable Cost Per Student 1,910 1,950Total Fixed Cost 2,050,000 2,000,000Actual Flexible Budget Master BudgetSales Revenue \$ 7,429,500 \$ 7,546,500 \$ 7,224,000Variable Costs \$ 4,469,400 \$ 4,563,000 \$ 4,368,000Contribution Margin \$ 2,960,100 \$ 2,983,500 \$ 2,856,000Fixed Costs \$ 2,050,000 \$ 2,000,000 \$ 2,000,000Profit \$ 910,100 \$ 983,500 \$ 856,000Assume 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 âstandardâ 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:

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