Four Flags is a retail department store. On January 1, 2012, Four Flags' accountants used the following data to develop the master budget for Four Flags for 2012:

 

 

 

Cost	Fixed	Variable (per unit sold)
Cost of Goods Sold	$0	$5.60
Selling and Promotion Expense	$210,000	$0.80
Building Occupancy Expense	$190,000	$0.10
Buying Expense	$140,000	$0.30
Delivery Expense	$105,000	$0.05
Credit and Collection Expense	$78,000	$0.02

 

 

 

Expected unit sales in 2012 were 1,300,000, and 2012 total revenue was expected to be $13,000,000. Actual 2012 unit sales turned out to be 1,050,000, and total revenue was $10,500,000. Actual costs in 2012 were:

 

 

 

Cost of Goods Sold	$6,000,000
Selling and Promotion Expense	$1,000,000
Building Occupancy Expense	$320,000
Buying Expense	$590,000
Delivery Expense	$180,000
Credit and Collection Expense	$20,000

 

Required
Compute the flexible-budget variances for the following two cost items (enter favorable variances as positive numbers and unfavorable variances as negative numbers):

 

 

 

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

 

 

 

1) Credit and Collection Expense?

2) Cost of Goods Sold ?