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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:
Total Costs
Driver Amount
$249,464
3,400 labor hours
$33,243
2,940 letters
$241,787
2,440,000 lines
$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):
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