Question
A commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula
A commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula for bus operating costs is $56,870 per month plus $2,888 per route plus $13 per commuter. The company expected its activity in November to be 89 routes and 258 commuters, but the actual activity was 93 routes and 267 commuters. The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to:
Multiple Choice
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$12,156 Unfavorable
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$23,825 Unfavorable
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$23,825 Favorable
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$11,669 Favorable
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$12,156 Favorable
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