The following is total monthly budgeted cost and activity information for the fo
ID: 2556462 • Letter: T
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 Account inquiry Correspondence Account billing Bill verification Variable $77,472 $9,576 $156,000 $10,920 Fixed $161,000 $24,000 $76,000 $77,000 Cost Driver 3,200 labor hours 2,800 letters 2,600,000 lines 19,500 accounts In September, actual costs and activity were as follows: Activity Center Account inquiry Correspondence Account billing Bill verification Total Costs $241,735 $34,229 $219,271 $88,473 Driver Amount 3,330 labor hours 2,990 letters 2,400,000 lines 19,580 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 billing Submit Answer Tries 0/10Explanation / Answer
Flexible budget variance :
Correspondence = (9576/2800*2990+24000)-34229 = 3.20 U
Account billling = (156000/2600000*2400000+76000)-219271 = 729 F
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