Reference no: EM13567957

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	$81,328	$168,000	3,400 labor hours
Correspondence	$9,604	$21,000	2,800 letters
Account billing	$175,000	$77,000	2,500,000 lines
Bill verification	$10,260	$78,000	19,000 accounts

In September, actual costs and activity were as follows:

Activity Center	Total Costs	Driver Amount
Account inquiry	$246,392	3,260 labor hours
Correspondence	$31,239	2,850 letters
Account billing	$250,244	2,480,000 lines
Bill verification	$87,394	19,150 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 billing?
• Account inquiry?