Question
Activity Center Variable Fixed Cost Driver Statement inquiry $79,594 $170,000 3,400 labor hours Correspondence $10,179 $25,000 2,900 letters Account billing $171,500 $88,000 2,450,000 lines Payment
Activity Center | Variable | Fixed | Cost Driver |
Statement inquiry | $79,594 | $170,000 | 3,400 labor hours |
Correspondence | $10,179 | $25,000 | 2,900 letters |
Account billing | $171,500 | $88,000 | 2,450,000 lines |
Payment verification | $11,310 | $80,000 | 19,500 accounts |
In September, actual total costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Statement inquiry | $251,587 | 3,510 labor hours |
Correspondence | $35,388 | 3,080 letters |
Account billing | $256,633 | 2,410,000 lines |
Payment verification | $92,079 | 19,470 accounts |
Required Compute the flexible-budget variances for the following two activity cost items (round all answers to the nearest dollar and enter favorable variances as positive numbers and unfavorable variances as negative numbers): Account billing Statement inquiry
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