# Question: The purchasing department at Feder buys all of its raw

The purchasing department at Feder buys all of its raw materials, supplies, and parts. This department is a cost center. It uses a flexible budget based on the number of different items purchased each month to forecast spending and as a control mechanism.
At the beginning of February, the purchasing department expected to purchase 8,200 different items. Given this expected number of purchased items, purchasing calculated its flexible budget for February to be \$ 1,076,400. In reviewing actual spending in February, the purchasing department was over its flexible budget by \$ 41,400 (unfavorable) when calculated using the actual number of items purchased. Actual spending in February was \$ 1,175,000, and the department purchased 9,300 units.
Budgeted fixed cost and budgeted variable cost per item purchased remained the same in the flexible budgets calculated at the beginning and end of February.

Required:
Calculate the fixed cost and the variable cost per item purchased used in the purchasing departmentâ€™s flexible budget in February.

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