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 | $78,200 | $158,000 | 3,400 labor hours |
Correspondence | $9,720 | $28,000 | 2,700 letters |
Account billing | $182,000 | $85,000 | 2,600,000 lines |
Payment verification | $10,045 | $77,000 | 20,500 accounts |
In September, actual total costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Statement inquiry | $235,750 | 3,360 labor hours |
Correspondence | $38,159 | 2,820 letters |
Account billing | $257,815 | 2,480,000 lines |
Payment verification | $86,371 | 20,310 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):
Account billing
Payment verification
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