Reference no: EM133170051

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	Variable	Fixed	Cost Driver
Statement inquiry	$74,048	$170,000	3,200 labor hours
Correspondence	$9,968	$23,000	2,800 letters
Account billing	$175,000	$71,000	2,500,000 lines
Payment verification	$9,430	$78,000	20,500 accounts

In September, actual total costs and activity were as follows:

Activity Center	Total Costs	Driver Amount
Statement inquiry	$249,464	3,400 labor hours
Correspondence	$33,243	2,940 letters
Account billing	$241,787	2,440,000 lines
Payment verification	$87,368	20,460 accounts

Required - Compute the flexible-budget variances for the following two activity cost items (round unit costs to two decimal places and enter favorable variances as positive numbers and unfavorable variances as negative numbers):

Correspondence

Account billing