(In this problem, you must create the flexible budget and flexible budget variances for two cost items. I suggest the following steps for each item: determine the cost function for the two items plug in the appropriate activity amount and compute the budget subtract the actual cost and compute the variance.)

The following is monthly budgeted cost and activity information for the four activity centers in the billing department of Oregon Power Company:

In September, actual costs and activity were as follows:

QUESTION: 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): Bill verification = Correspondence =