The following is total monthly budgeted cost and activity information for the fo
ID: 3197517 • 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 Variable $81,675 $9,261 $156,000 $11,340 Fixed $153,000 $24,000 $85,000 $76,000 Cost Driver 3,300 labor hours 2,700 letters 2,600,000 lines 21,000 accounts Account inquiry Account billing Bill verification In September, actual costs and activity were as follows Activity Center Total Costs $233,432 $32,619 $239,440 $86,748 Driver Amount 3,290 labor hours 2,580 letters 2,590,000 lines 21,030 accounts Account inquiry Account billing 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) Account billing Submit Answer Tries 0/10Explanation / Answer
Bill verification: flexible-budget variance = ($11340+$76000) - $86748 = $592
Account billing: flexible-budget variance = ($156000+$85000)-$239440 = $1560.
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