Reference no: EM13568052

The following is 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	$82,212	$166,000	3,400 labor hours
Correspondence	$9,531	$27,000	2,700 letters
Account billing	$153,000	$73,000	2,550,000 lines
Bill verification	$8,800	$76,000	22,000 accounts

In September, actual costs and activity were as follows:

Activity Center	Total Costs	Driver Amount
Account inquiry	$247,094	3,340 labor hours
Correspondence	$36,521	2,880 letters
Account billing	$233,821	2,690,000 lines
Bill verification	$84,123	21,820 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):

• Account inquiry   
• Account billing