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 | $78,272 | $151,000 | 3,200 labor hours |
Correspondence | $9,450 | $23,000 | 2,700 letters |
Account billing | $125,000 | $82,000 | 2,500,000 lines |
Bill verification | $9,555 | $80,000 | 19,500 accounts |
In September, actual costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Account inquiry | $227,811 | 3,160 labor hours |
Correspondence | $31,383 | 2,500 letters |
Account billing | $215,648 | 2,660,000 lines |
Bill verification | $90,461 | 19,570 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):
Bill verification: Account billing:
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