The following is monthly budgeted cost and activity information for the four activity centers in the billing department of Oregon Power Company:
Variable
Fixed
Cost Driver
$80,886
$164,000
3,400 labor hours
$9,720
$29,000
2,700 letters
$178,500
$76,000
2,550,000 lines
$11,210
$77,000
19,000 accounts
In September, actual costs and activity were as follows:
Total Costs
Driver Amount
$246,552
3,470 labor hours
$38,592
2,860 letters
$267,241
2,740,000 lines
$89,068
19,050 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
Solution
Activity Center Variable(A) Fixed(B) Cost Driver
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The following is monthly budgeted cost and activity information for th.docx
1. The following is monthly budgeted cost and activity information for the four activity centers in
the billing department of Oregon Power Company:
Variable
Fixed
Cost Driver
$80,886
$164,000
3,400 labor hours
$9,720
$29,000
2,700 letters
$178,500
$76,000
2,550,000 lines
$11,210
$77,000
19,000 accounts
In September, actual costs and activity were as follows:
Total Costs
Driver Amount
$246,552
3,470 labor hours
$38,592
2. 2,860 letters
$267,241
2,740,000 lines
$89,068
19,050 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
Activity Center Variable Fixed Cost Driver
Account inquiry $80,886 $164,000 3,400 labor hours
Correspondence $9,720 $29,000 2,700 letters
Account billing $178,500 $76,000 2,550,000 lines
Bill verification $11,210 $77,000 19,000 accounts
Solution
Activity Center Variable(A) Fixed(B) Cost Driver
