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 $82,071 $153,000 3,300 labor hours Correspondence $9,744 $23,000 2,800 letters Account billing $153,000 $77,000 2,550,000 lines Bill verification $11,115 $78,000 19,500 accounts In September, actual costs and activity were as follows: Activity Center Total Costs Driver Amount Account inquiry $236,666 3,340 labor hours Correspondence $32,813 2,990 letters Account billing $239,993 2,730,000 lines Bill verification $88,289 19,440 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):
1. Correspondence
2. Account billing