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In: Accounting

The following is total monthly budgeted cost and activity information for the four activity centers in...

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

$76,416

$150,000

3,200 labor hours

Correspondence

$10,063

$24,000

2,900 letters

Account billing

$182,000

$82,000

2,600,000 lines

Bill verification

$10,750

$79,000

21,500 accounts


In September, actual costs and activity were as follows:

Activity Center

Total Costs

Driver Amount

Account inquiry

$224,331

3,080 labor hours

Correspondence

$34,101

2,990 letters

Account billing

$253,415

2,450,000 lines

Bill verification

$89,846

21,320 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):

  Account inquiry:

  Correspondence:   

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