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 |
$81,328
|
$168,000
|
3,400 labor hours
|
| Correspondence |
$9,604
|
$21,000
|
2,800 letters
|
| Account billing |
$175,000
|
$77,000
|
2,500,000 lines
|
| Bill verification |
$10,260
|
$78,000
|
19,000 accounts
|
In September, actual costs and activity were as follows:
| Activity Center |
Total Costs
|
Driver Amount
|
| Account inquiry |
$246,392
|
3,260 labor hours
|
| Correspondence |
$31,239
|
2,850 letters
|
| Account billing |
$250,244
|
2,480,000 lines
|
| Bill verification |
$87,394
|
19,150 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 billing?
- Account inquiry?