The flexible budget calculation ($990,000) is based on actual quantity. When the $990,000 is compared with the actual cost of $920,000 for this activity center, a favorable price variance of $70,000 is realized. When the $990,000 is compared with the budgeted cost of $937,500 for this activity center, an unfavorable quantity variance of ($52,500) is realized. Exhibit 182 also illustrates the computation of a net proof total amounting to $17,500?