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A commuter bus company uses two measures of activity, routes and commuters, in the cost formules in its budgets and performance reports. The cost formula
A commuter bus company uses two measures of activity, routes and commuters, in the cost formules in its budgets and performance reports. The cost formula for bus operating costs is $56,890 per month plus $2,888 per route plus $17 per commuter. The company expected its activity in November to be 88 routes and 256 commuters, but the actual activity was 92 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 $22,025 Unfavorable $22,025 Favorable $10.286 Unfavorable $11,739 Favorable $10.286 Favorable
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