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The systems consulting department of Johnson Swimwear designs data collecting, encoding, and reporting systems to fit the needs of other departments within the company. An overall cost driver is the number of requests made to the systems consulting department. The expected variable cost of handling a request was $500, and the number if requests expected for June 2001 was 75. Johnson budgeted its monthly fixed costs for the department (salaries, equipment depreciation, space costs) at $65,000.
The actual number of rquests serviced by systems consulting in June 2001 was 90, and the total costs incurred by the department was $116,000. Of that amount, $76,000 was for fixed costs.
Compute the static budget variances and the flexible-budget variances for variable and fixed costs for the systems consulting department for June 2001.
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