In this problem, you must create the flexible budget and flexible budget variances for two cost items.

1. Before you compute the variance, you must identify the parameters of the cost functions (i.e., the fixed cost and the variable cost per unit).
2. Be careful to use the correct activity measure.
3. Read the directions about the sign that you should enter.
4. No partial credit

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Four Flags is a retail department store. On January 1, 2020, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2020:

Cost	Fixed	Variable (per sales dollar)
Cost of Goods Sold	$0	$0.680
Selling and Promotion Expense	$210,000	$0.080
Building Occupancy Expense	$180,000	$0.020
Buying Expense	$155,000	$0.040
Delivery Expense	$120,000	$0.005
Credit and Collection Expense	$60,000	$0.001

Expected unit sales in 2020 were 1,200,000, and 2020 total revenue was expected to be $12,000,000. Actual 2020 unit sales turned out to be 1,100,000, and total revenue was $11,000,000. Actual total costs in 2020 were:

Cost of Goods Sold	$6,000,000
Selling and Promotion Expense	$1,100,000
Building Occupancy Expense	$500,000
Buying Expense	$680,000
Delivery Expense	$170,000
Credit and Collection Expense	$35,000

Required Compute the flexible budget variances in 2020 for the following two cost items (NOTE: enter favorable variances as positive numbers and unfavorable variances as negative numbers): Credit and Collection Expense: Buying Expense :