The following is total monthly budgeted cost and activity information for the four activity centers in the
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 | Variable | Fixed | Cost Driver |
Statement inquiry | $82,104 | $153,000 | 3,300 labor hours |
Correspondence | $10,266 | $24,000 | 2,900 letters |
Account billing | $147,000 | $84,000 | 2,450,000 lines |
Payment verification | $9,750 | $79,000 | 19,500 accounts |
In September, actual total costs and activity were as follows:
Activity Center | Total Costs | Driver Amount |
Statement inquiry | $232,526 | 3,220 labor hours |
Correspondence | $33,951 | 2,940 letters |
Account billing | $224,438 | 2,340,000 lines |
Payment verification | $88,653 | 19,300 accounts |
Required
Compute the flexible-budget variances for the following two activity cost items (round unit costs to two decimal places and enter favorable variances as positive numbers and unfavorable variances as negative numbers):
Payment verification
Correspondence
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso