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 |
Account inquiry | $81,213 | $158,000 | 3,300 labor hours |
Correspondence | $10,024 | $29,000 | 2,800 letters |
Account billing | $127,500 | $84,000 | 2,550,000 lines |
Bill verification | $10,140 | $80,000 | 19,500 accounts |
In September, actual costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Account inquiry | $241,138 | 3,400 labor hours |
Correspondence | $39,527 | 2,930 letters |
Account billing | $209,819 | 2,520,000 lines |
Bill verification | $90,542 | 19,680 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): Correspondence: Account billing:
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