Be sure to follow the instructions about the sign that you

Assignment Help Accounting Basics

Reference no: EM13568109

In this problem, you must create the flexible budget and flexible budget variances for two cost items. I suggest the following steps for each item:

determine the cost function for the two items
plug in the appropriate activity amount and compute the budget
subtract the actual cost and compute the variance.

Be sure to follow the instructions about the sign that you should enter with your numerical answer. There is no partial credit - you must get both variances correct in order to get the full 10 points.
______________________________________________________

The following is 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	$79,288	$160,000	3,400 labor hours
Correspondence	$9,716	$20,000	2,800 letters
Account billing	$120,000	$75,000	2,400,000 lines
Bill verification	$8,610	$76,000	21,000 accounts

In September, actual costs and activity were as follows:

Activity Center	Total Costs	Driver Amount
Account inquiry	$240,816	3,480 labor hours
Correspondence	$30,493	2,840 letters
Account billing	$203,833	2,560,000 lines
Bill verification	$84,995	21,110 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 =

Bill verification =

Reference no: EM13568109

Questions Cloud

Reddick enterprises stock currently sells for 4050 per : reddick enterprises stock currently sells for 40.50 per share. the dividend is projected to increase at a constant

Goode incs stock has a required rate of return of 1150 and : goode inc.s stock has a required rate of return of 11.50 and it sells for 18.00 per share. goodes dividend is expected

Harper has decided that the number of units in its : julyaugustseptemberoctobersales in units4500530040003700harper has decided that the number of units in its inventory at

The word exoticism refers to a fascination with the : the word exoticism refers to a fascination with the unfamiliar perhaps mysterious cultures long ago andor far away.in

Be sure to follow the instructions about the sign that you : in this problem you must create the flexible budget and flexible budget variances for two cost items. i suggest the

The previous retained earning were 780 million how much in : in its most recent financial statements newhouse inc. reported 50 million of net income and 810 million of retained

Your paper will analyze a performance of concert classical : overviewyour paper will analyze a performance of concert classical music world music or jazz. the following guiding

Apple two enterprises expects to generate sales of 5950000 : apple two enterprises expects to generate sales of 5950000 for fiscal 2002 sales were 3450000 in fiscal 2001. assume

Rust bucket motor credit corporation rbmcc a subsidiary of : rust bucket motor credit corporation rbmcc a subsidiary of rust bucket motor offered some securities for sale to the

User Account

All Pages