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

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

Activity Center

Variable

Fixed

Cost Driver

Statement inquiry

$78,936

$162,000

3,300 labor hours

Correspondence

$9,688

$22,000

2,800 letters

Account billing

$130,000

$78,000

2,600,000 lines

Payment verification

$8,100

$76,000

18,000 accounts

In September, actual total costs and activity were as follows:

Activity Center

Total Costs

Driver Amount

Statement inquiry

$245,787

3,470 labor hours

Correspondence

$31,935

2,870 letters

Account billing

$214,150

2,720,000 lines

Payment verification

$83,798

18,050 accounts

Required Compute the flexible-budget variances for the following two activity cost items (round variable costs per unit to two decimal places and enter favorable variances as positive numbers and unfavorable variances as negative numbers): Correspondence Account billing

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