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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 $56,860 per month plus $2,882 per route plus $17 per commuter. The company expected its activity in November to be 87 routes and 255 commuters, but the actual activity was 94 routes and 265 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:
a) 6,829 favorable
b) 6,829 unfavorable
c) 21173 favorable
d) 20344 favorable
e) 27173 unfavorable

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