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:

Pigmented Crescents

Darkened, crescent-shaped areas often found at the margin of the optic disc in the human eye.

Macula

A small central area of the retina responsible for sharp, detailed vision, particularly critical for tasks like reading and driving.

Papilledema

Swelling of the optic disc due to increased intracranial pressure, which can be observed through an eye examination and may indicate serious medical conditions.

Intracranial Pressure

Pressure within the skull affecting the brain, can be altered by brain injuries, illnesses, or conditions, leading to symptoms such as headache, vomiting, or changes in consciousness.