The following is total monthly budgeted cost and activity information for the four activity centers in the billing depar
Posted: Sun Apr 17, 2022 7:07 pm
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
$80,342
$157,000
3,400 labor hours
$9,884
$28,000
2,800 letters
$147,000
$84,000
2,450,000 lines
$10,915
$76,000
18,500 accounts
In September, actual total costs and activity were as follows:
Total Costs
Driver Amount
$235,987
3,320 labor hours
$38,866
3,000 letters
$228,653
2,400,000 lines
$86,189
18,300 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):
Correspondence:
Account billing:
information for the four activity centers in the billing department
of Oregon Power Company:
Variable
Fixed
Cost Driver
$80,342
$157,000
3,400 labor hours
$9,884
$28,000
2,800 letters
$147,000
$84,000
2,450,000 lines
$10,915
$76,000
18,500 accounts
In September, actual total costs and activity were as follows:
Total Costs
Driver Amount
$235,987
3,320 labor hours
$38,866
3,000 letters
$228,653
2,400,000 lines
$86,189
18,300 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):
Correspondence:
Account billing: