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 |
$82,212
|
$166,000
|
3,400 labor hours
|
| Correspondence |
$9,531
|
$27,000
|
2,700 letters
|
| Account billing |
$153,000
|
$73,000
|
2,550,000 lines
|
| Bill verification |
$8,800
|
$76,000
|
22,000 accounts
|
In September, actual costs and activity were as follows:
| Activity Center |
Total Costs
|
Driver Amount
|
| Account inquiry |
$247,094
|
3,340 labor hours
|
| Correspondence |
$36,521
|
2,880 letters
|
| Account billing |
$233,821
|
2,690,000 lines
|
| Bill verification |
$84,123
|
21,820 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
- Account billing