Quick Delivery Operates a Delivery Service for Local Restaurants, Delivering $\$ 3.450$

question 74

Essay

Quick Delivery operates a delivery service for local restaurants, delivering call-in, to-go meals for restaurant customers. Variable overhead costs are budgeted at $3 per hour, and the typical roundtrip takes a driver 45 minutes to complete. Actual results for March follow. Number of roundtrips run: 1,560
Hours of delivery time: 1,250
Variable overhead cost incurred: $\$ 3.450$ Quick uses flexible budgets and variance analysis to monitor performance.
Required:
A. Prepare a flexible-budget performance report that shows (1) actual variable overhead, (2) the amount of variable overhead that should have been incurred for the number of roundtrips taken, and (3) the variance between these amounts.
B. Compute the company's variable-overhead spending and efficiency variances.
C. Compare the variances that you computed in requirements "A" and "B," and comment on your findings

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Definitions:

Automobile Advertisements

Marketing efforts aimed at promoting and selling cars, focusing on features, price, and appeal to potential buyers.

Flooding

A form of behavior therapy based on the principles of exposure, where an individual is exposed to an overwhelming amount of an anxiety-producing stimulus in order to reduce the fear response.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for quick response to perceived threats, often referred to as the "fight or flight" system.

Arousal

A physiological and psychological state of being awoken or activated, often associated with enhanced alertness or readiness.