When CFS fights residential and commercial fires, it uses a substance called "fast water" to improve the flow rate of the water they spray on the buildings

The department expected to use approximately 2 gallons of fast water per hour of fire fighting and has budgeted $2.50 per gallon of the material. During the 2009 fiscal year, CFS expected to use 18,750 hours fighting 1,250 residential and commercial fires or an average of 15 hours per fire.

By the end of the year, CFS had spent 20,000 hours fighting residential and commercial fires and had used 42,000 gallons of fast water. CFS's total fast water expenditure for the year was $115,000. Calculate the following variances for CFS's fast-water usage and indicate whether they were favorable or unfavorable. Be sure to add up the flexible (partial) variances and check to make sure that sum equals the total variance.

a. CFS's total fast-water cost variance for the 2009 fiscal year
b. the portion of the fast-water cost variance that was due to volume
c. the portion of the fast-water cost variance that was due to quantity
d. the portion of the fast-water cost variance that was due to cost

Budget Actual
Fires 1250
Hours per fire 15
Fire Fighting Hours 18,750 20,000
Gallons of Fast Water 42,000
Gallons per Hour 2 2.1
Cost per Gallon $2.50 $2.74
Total Cost Computed $115,000
Actual Change in Quantity Change in Volume Budget
Volume (Fire Hours) 20,000 20,000 20,000 18,750
Quantity (Gallons per Hour) 2.1 2.1 2.0 2.0
Cost (per Gallon) $2.74 $2.50 $2.50 $2.50
Total $115,000 $105,000 $100,000 $93,750

Total Variance ($21,250) U

Volume Variance ($6,250) U
Quantity Variance ($5,000) U
Cost Variance ($10,000) U

Total Variance ($21,250) U