[VARIANCE ANALYSIS] The following is total monthly budgeted cost and activity in
ID: 2555581 • Letter: #
Question
[VARIANCE ANALYSIS]
The following is total monthly budgeted cost and activity information for the four activity centers in the billing department of Oregon Power Company:
Variable
Fixed
Cost Driver
$80,982
$157,000
3,300 labor hours
$9,504
$21,000
2,700 letters
$120,000
$88,000
2,400,000 lines
$11,180
$77,000
21,500 accounts
In September, actual costs and activity were as follows:
Total Costs
Driver Amount
$242,736
3,480 labor hours
$30,010
2,500 letters
$198,969
2,220,000 lines
$87,502
21,620 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):
Correspondence
Account inquiry
Variable
Fixed
Cost Driver
Account inquiry$80,982
$157,000
3,300 labor hours
Correspondence$9,504
$21,000
2,700 letters
Account billing$120,000
$88,000
2,400,000 lines
Bill verification$11,180
$77,000
21,500 accounts
Explanation / Answer
Compute the flexible-budget variances for the following two activity cost items
Flexible budget Actual Variance Correspondence 29800 30010 -210 U Account inquiry 199000 198969 31 FRelated Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.