PROBLEM # 7 [ 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:

Activity Center

Variable

Fixed

Cost Driver

Account inquiry

$75,936

$165,000

3,200 labor hours

Correspondence

$10,324

$21,000

2,900 letters

Account billing

$156,000

$76,000

2,600,000 lines

Bill verification

$10,105

$78,000

21,500 accounts

In September, actual costs and activity were as follows:

Activity Center

Total Costs

Driver Amount

Account inquiry

$236,390

3,030 labor hours

Correspondence

$31,409

2,880 letters

Account billing

$241,854

2,780,000 lines

Bill verification

$87,145

21,350 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):

Bill verification [__?__]

Account inquiry [__?__]