Question
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 | $76,329 | $151,000 | 3,300 labor hours |
Correspondence | $10,353 | $27,000 | 2,900 letters |
Account billing | $156,000 | $74,000 | 2,600,000 lines |
Payment verification | $10,500 | $80,000 | 21,000 accounts |
In September, actual total costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Statement inquiry | $228,289 | 3,340 labor hours |
Correspondence | $37,844 | 3,040 letters |
Account billing | $229,383 | 2,590,000 lines |
Payment verification | $91,013 | 20,890 accounts |
Required Compute the flexible-budget variances for the following two activity cost items (round unit costs to two decimal places and enter favorable variances as positive numbers and unfavorable variances as negative numbers): 1 Account billing : 2 Payment verification :
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